Circle’s tokenized US Treasury fund USYC has surged to about $2.2 billion in supply, overtaking BlackRock’s BUIDL to become the market leader. The uptrend is driven by rising on-chain yields and collateral demand, pushing the total tokenized US Treasuries market above $110 billion, a new record. Around March 13, USYC supply stood at roughly $2.2 billion, surpassing BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) of about $2.0 billion. BUIDL’s market share had climbed to as high as 46% last May but has since fallen to around 18% as more products entered the market.
The growth is being supported by Binance’s ecosystem, with USYC introduced on the BNB Chain as off-exchange collateral for institutional derivatives, boosting USYC supply on that chain to about $1.84 billion since its July launch. Investors can use USYC as collateral via a Binance banking tri-party and the institutional custody platform Seefu.
Tokenized Treasuries and money-market-like assets are attracting yield-focused collateral from digital-asset investors and institutions, aided by 24/7 access, faster settlement, and greater transparency. Unlike cash, collateralized tokens can generate yield while posted, enhancing capital efficiency. The broader market has grown around a 27% year-to-date rise, with roughly $2.5 billion added since the start of the year.
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