Circle Surpasses BlackRock In Tokenized Treasuries As Market Reaches $11B

Circle Surpasses BlackRock in Tokenized Treasuries as Market Hits $11 Billion

Circle has overtaken BlackRock to become the largest issuer of tokenized U.S. Treasury exposure, marking a turning point in the rapidly expanding market for blockchain-based real-world assets. The development comes as the total value of tokenized Treasury products surpasses $11 billion, underscoring growing institutional demand for on-chain yield and collateral amid volatile crypto market conditions.

Data compiled by RWA.xyz shows Circle’s USYC tokenized Treasury fund has expanded to roughly $2.2 billion in supply, pushing it ahead of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which currently holds around $2 billion in assets. The shift highlights intensifying competition among asset managers seeking to bring traditional financial instruments onto blockchain infrastructure.

Circle’s USYC Fund Overtakes BlackRock’s BUIDL

Circle entered the tokenized Treasury sector after acquiring Hashnote, the issuer of the USYC fund, in early 2025. Since then, the product has grown steadily as crypto-native investors and institutional traders search for yield-bearing alternatives to stablecoins.

USYC’s rise comes as BlackRock’s BUIDL fund—developed with digital asset tokenization platform Securitize—loses relative market share. According to RWA.xyz, BUIDL’s share of the tokenized Treasury sector has fallen to roughly 18%, down from a peak of 46% recorded in May last year.

The shift signals a broader diversification in the sector as new issuers launch tokenized cash equivalents designed to bridge decentralized finance and traditional capital markets.

BNB Chain Integration Accelerates Growth

A significant portion of USYC’s expansion appears tied to its adoption within the BNB Chain ecosystem. Binance introduced the token as off-exchange collateral for institutional derivatives trading, giving the asset a practical role within professional trading infrastructure.

Under the arrangement, institutions can hold USYC with partner banks through Binance Banking Triparty or store the asset with Ceffu, the exchange’s institutional custody platform.

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Since the integration launched in July, USYC supply on BNB Chain alone has climbed to approximately $1.84 billion. The development illustrates how tokenized Treasury products are evolving beyond passive yield instruments into functional collateral within digital asset markets.

Circle CEO Jeremy Allaire highlighted the emerging use case in a social media post, noting that tokenized Treasuries and repo assets are rapidly becoming integral to institutional crypto trading strategies.

Why Tokenized Treasuries Are Gaining Momentum

Tokenized Treasury funds represent a category of real-world assets (RWA) that place traditional financial instruments such as government bonds or money-market funds onto blockchain networks.

The structure provides several operational advantages over conventional financial infrastructure:

Continuous Market Access

Unlike traditional securities markets that operate within fixed trading hours, tokenized assets can be transferred and settled around the clock. This continuous liquidity appeals to global crypto investors operating across multiple time zones.

Transparent Reserves

Blockchain infrastructure allows investors to verify token supply and transaction activity in real time, improving transparency compared with many off-chain financial products.

Capital Efficiency in Trading

Treasury-backed tokens can generate yield while simultaneously functioning as collateral in trading strategies. That dual utility improves capital efficiency compared with holding stablecoins or idle cash balances.

These features have increasingly attracted hedge funds, market makers and institutional trading desks seeking stable yield during periods of market uncertainty.

Market Expansion Accelerates During Crypto Volatility

The broader tokenized Treasury market has surged to a new record above $11 billion in assets, according to RWA.xyz data. The sector has added approximately $2.5 billion in value since the start of the year, representing growth of roughly 27%.

Interestingly, the pace of adoption accelerated during January’s crypto market downturn. Analysts suggest investors moved capital into tokenized Treasury products to preserve yield while waiting for more favorable conditions to redeploy funds into digital assets.

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This behavior mirrors traditional financial markets, where investors often rotate into government bonds during periods of market stress.

Institutional Tokenization Race Intensifies

Circle’s rise to the top of the tokenized Treasury market signals a broader institutional race to digitize traditional financial assets. Asset managers, fintech platforms and crypto-native firms are competing to capture early market share in what many view as one of the most promising intersections between blockchain technology and conventional finance.

The sector’s rapid growth suggests tokenized Treasuries could become a foundational layer for decentralized finance, providing a low-risk yield benchmark similar to how U.S. Treasury bills function in traditional markets.

Industry observers expect competition to intensify as more asset managers explore tokenized funds, repo products and on-chain cash management solutions.

What to Watch Next

The evolution of tokenized Treasury markets will likely depend on several factors, including regulatory clarity, institutional infrastructure and cross-chain liquidity solutions. Major asset managers entering the space could further accelerate adoption by bringing deeper liquidity and broader distribution channels.

For now, Circle’s rapid ascent underscores how quickly the balance of power can shift in blockchain-based financial markets.

Key Takeaways

Circle’s USYC tokenized Treasury fund has grown to about $2.2 billion, surpassing BlackRock’s BUIDL fund.
The overall tokenized Treasury market has reached a new record above $11 billion in assets.
Integration with BNB Chain and Binance’s institutional trading infrastructure helped drive USYC’s growth.
Tokenized Treasuries offer yield while functioning as collateral in crypto trading strategies.
Institutional competition in real-world asset tokenization is intensifying across the crypto industry.

Source:CoinDesk, RWA.xyz data