The rapidly growing market for tokenized US Treasuries has a new leader.
Circle (CRCL), best known as the issuer of the USDC stablecoin (USDC), has become the largest provider of Treasury tokenized exposure after its USYC token expanded to around $2.2 billion in supply, according to data from RWA.xyz.
That growth pushed USYC beyond BlackRock’s dollar Institutional Digital Liquidity Fund (BUIDL), issued with tokenization specialist Securitize, which currently holds around $2 billion in assets. BUIDL’s market share fell to 18% from a high of 46% in May as competition with new entrants increased.
Real-world tokenized assets such as Treasury bills and money market funds are gaining traction among cryptocurrency traders and institutional investors as yield-generating collateral and a tool for parking cash on-chain. Unlike traditional financial infrastructure, blockchain-based tokens enable near-instant settlement, transparent reserves, and 24-hour access.
Treasury-backed tokens also offer an additional advantage: they allow investors to earn interest while using the assets as collateral in trading strategies, potentially improving capital efficiency compared to holding stablecoins or cash.
Circle entered the tokenized fund market after acquiring USYC issuer Hashnote in early 2025.
BUIDL issuer Securitize did not respond to a request for comment by press time.
A booming market
A deeper dive into the data shows that much of USYC’s recent expansion appears to be linked to activity on the BNB chain, where cryptocurrency exchange giant Binance introduced the token as off-exchange collateral for institutional derivatives trading.
Under this structure, USYC can be held with partner banks through Binance Banking Triparty or with Ceffu, Binance’s institutional custody platform.
Since launching in July, USYC’s supply in BNB has increased to $1.84 billion, data shows.
“Tokenized Treasuries and repos as collateral are an important emerging use case and we are proud of how quickly it has grown,” Circle CEO Jeremy Allaire said in a post on X on Friday.
The broader tokenized Treasury market is also booming, hitting a new record of more than $11 billion, according to data from RWA.xyz. The sector added approximately $2.5 billion in market value, about 27%, since the beginning of the year.
Growth accelerated during January’s cryptocurrency market slowdown, suggesting that some investors may be depositing capital in tokenized Treasuries to earn a steady return while waiting for opportunities to redeploy funds into digital assets.
