Circle’s USYC Overtakes BlackRock’s BUIDL as Largest Tokenized U.S. Treasury
Circle’s USD Yield Coin (USYC) has surpassed BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) to become the largest tokenized U.S. Treasury product by supply, with USYC around $2.2 billion versus BUIDL about $2.0 billion as of late 2025. The rise reflects growing institutional adoption of tokenized real-world assets (RWAs), improved tokenization infrastructure, and clearer regulation. Key drivers include USYC’s multi-chain distribution (Ethereum and BNB Chain) and a major BNB Chain integration: Binance permitted USYC as OTC/over-the-counter collateral for institutional derivatives, boosting utility, liquidity and demand. Much of USYC’s growth is concentrated on BNB Chain, where on-chain supply rose sharply after Binance enabled USYC as off-exchange collateral via institutional clearing/custody partnerships. Circle entered the market after acquiring Hashnote (the USYC issuer) in early 2025. Meanwhile, BlackRock’s BUIDL lost market share—falling from a 46% peak in May 2024 to roughly 18%—as competition increased and new tokenized Treasury products expanded TVL. The broader tokenized Treasuries market set a record above $11 billion (up ~27% YTD), signalling rising on-chain capital parking and yield demand during crypto volatility. Traders should watch: rising TVL in tokenized Treasuries, deeper DeFi integration, exchange collateral utility, potential regulatory scrutiny, and effects on stablecoin and RWA token liquidity, derivative margin requirements, and cross-asset funding conditions. Primary keywords: tokenized Treasuries, USYC, BUIDL, RWAs, BNB Chain.
Bullish
This development is bullish for USYC specifically. USYC overtaking BUIDL in supply—driven by multi-chain availability and a concrete exchange-level use case (permission as OTC collateral on BNB Chain)—increases on-chain demand, utility and liquidity for the token. Short-term effects: higher inflows and TVL to USYC could tighten funding spreads and improve depth, reducing volatility for USYC relative to peers. Traders may see narrowing derivative margins and increased borrow/lend activity tied to USYC as it becomes accepted collateral. Long-term effects: sustained institutional adoption, broader DeFi integrations and exchange collateral acceptance support persistent demand and deeper markets for USYC, which can underpin appreciation or at least reduced downside volatility versus competing RWA tokens. Risks that could temper bullishness include regulatory actions on tokenized RWAs or changes in exchange/custody policies; these would affect liquidity and collateral usability. Overall, the net price impact on USYC is likely positive given the combination of utility, institutional flows and network effects described in both summaries.