The fast-growing tokenized U.S. Treasury market has a new leader.
Circle (CRCL) is best known as the publisher of. $USDC ($USDCThe stablecoin has become the largest provider of tokenized Treasury exposure after the supply of USYC tokens expanded to approximately $2.2 billion, according to data from RWA.xyz.
This growth has seen USYC overtake BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) (issued with tokenization specialist Securitize), which currently holds approximately $2 billion in assets. With increased competition from new entrants, BUIDL’s market share has shrunk to 18% from a peak of 46% in May.
Tokenized US Treasury Market (RWA.xyz)
Tokenized real-world assets such as Treasury bills and money market funds are gaining traction among crypto traders and institutional investors as tools to store yield-producing collateral and on-chain cash. Unlike traditional financial infrastructure, blockchain-based tokens enable near-instant payments, transparent reserves, and 24-hour access.
Treasury-backed tokens also have additional benefits. Investors can earn interest while using their assets as collateral for trading strategies, potentially increasing capital efficiency compared to holding stablecoins or cash.
Circle entered the tokenized fund market after acquiring Hashnote, the issuer of USYC, in early 2025.
BUIDL publisher Securitize did not respond to requests for comment by press time.
A booming market
Digging deeper into the data, much of USYC’s recent expansion is due to $BNB On Chain, major cryptocurrency exchange Binance has introduced tokens as off-exchange collateral for institutional derivatives trading.
Under this structure, USYC can be held with partner banks through Binance Banking Triparty or on Binance’s institutional custodian platform, Ceffu.
Since its launch in July, USYC supplies have been steady. $BNB According to the data, it has ballooned to $1.84 billion.
“Tokenized government bonds and repos as collateral are a major emerging use case, and we are proud of how quickly this has grown,” Circle CEO Jeremy Allaire said in a post on X on Friday.
The broader tokenized U.S. Treasury market is also booming, hitting an all-time high of more than $11 billion, according to data from RWA.xyz. The sector has increased its market value by about $2.5 billion, or about 27%, since the beginning of the year.
This growth accelerated during January’s crypto market downturn, suggesting some investors may be parking their capital in tokenized U.S. Treasuries for stable yields while waiting for an opportunity to reallocate their funds to digital assets.
