Circle has become the largest provider of tokenized U.S. Treasury exposure, with its USYC token reaching approximately $2.2 billion in supply. This growth overtakes BlackRock's BUIDL fund, which holds around $2 billion in assets. The expansion positions Circle as the new leader in the burgeoning market for tokenized real-world assets.
Tokenized Treasury bills and money-market funds are attracting crypto traders and institutional investors seeking yield-generating collateral and a secure place for onchain cash. These blockchain-based tokens offer advantages such as near-instant settlement, transparent reserves, and 24/7 access, distinct from traditional financial infrastructure. Investors can also earn interest while using these assets as collateral, potentially improving capital efficiency.
Circle's entry into this market followed its acquisition of Hashnote, the issuer of USYC, in early 2025. Much of USYC's recent surge is linked to activity on BNB Chain, where it is used as off-exchange collateral for institutional derivatives trading. The broader tokenized Treasury market has also reached a new record high, exceeding $11 billion, with significant growth observed since the start of the year, even during market downturns.