SKN | Circle Overtakes BlackRock in Tokenized Treasuries as Market Surpasses $11B

Key Points:

• Circle’s USYC token has become the largest tokenized U.S. Treasury product with about $2.2 billion in supply.

• The token overtook BlackRock’s BUIDL fund as the market for tokenized Treasuries exceeded $11 billion.

• Much of USYC’s growth is linked to its use as collateral for derivatives trading on BNB Chain.

Circle Moves Ahead in Tokenized Treasury Market

The market for blockchain-based Treasury products has reached a new milestone as Circle has become the largest issuer of tokenized U.S. Treasuries. Circle’s tokenized Treasury product, USYC, expanded to roughly $2.2 billion in supply, according to market data compiled by RWA.xyz.

The growth pushed USYC ahead of the BlackRock USD Institutional Digital Liquidity Fund, which was launched by BlackRock in partnership with the tokenization platform Securitize. BUIDL currently manages around $2 billion in assets after previously holding nearly half of the tokenized Treasury market earlier in the year.

Tokenized Treasuries Market Reaches Record Size

The broader market for tokenized U.S. Treasury products has expanded rapidly, surpassing $11 billion in total value. According to industry data, the sector has grown by roughly 27% since the beginning of the year, adding approximately $2.5 billion in new capital.

The surge reflects growing interest in blockchain-based versions of traditional financial instruments, particularly during periods of volatility in the cryptocurrency market. Investors often use tokenized Treasuries as a way to earn yield while keeping capital within the digital asset ecosystem.

BNB Chain Drives USYC Expansion

Much of USYC’s recent growth appears to be tied to its adoption within the ecosystem surrounding Binance.

The token has been integrated on BNB Chain as off-exchange collateral for institutional derivatives trading.

Under this structure, the token can be held through partner banks in a triparty arrangement connected to Binance’s institutional services or through its custody platform, Ceffu.

Since its launch on BNB Chain in July, the circulating supply of USYC on the network has grown to approximately $1.84 billion.

Yield and Capital Efficiency Driving Demand

Tokenized Treasury assets offer investors a combination of yield generation and capital efficiency.

Unlike traditional stablecoins, Treasury-backed tokens provide exposure to government debt instruments while also allowing the assets to be used as collateral in trading strategies.

This flexibility makes them attractive to institutional traders who want to earn interest while maintaining liquidity within crypto markets.

Real-World Asset Tokenization Accelerates

Circle entered the tokenized Treasury sector after acquiring the issuer of USYC in early 2025, expanding beyond its core stablecoin business.

According to Circle CEO Jeremy Allaire, tokenized Treasuries and repo instruments are emerging as major use cases for blockchain technology in traditional finance.

The rapid growth of the sector highlights the broader trend of tokenizing real-world assets, which analysts say could reshape financial infrastructure by bringing traditional securities onto blockchain networks.