Key Takeaways
- BlackRock’s BUIDL now leads all tokenized US Treasury funds with a $2.8 billion market cap.
- BUIDL now represents about 18.5% of the $15.1 billion tokenized Treasury market.
- The rapid shift between BUIDL and Circle’s USYC highlights growing institutional competition in tokenized assets.
BlackRock’s BUIDL fund has reclaimed its position as the largest tokenized US Treasury product, just over a week after Circle’s USYC briefly moved into first place.
BUIDL now holds roughly $2.8 billion, about 18.5% of the $15.1 billion tokenized Treasury market, Token Terminal data shows.
BlackRock’s BUIDL has regained its position as the largest tokenized U.S. Treasury fund, narrowly surpassing Circle’s USYC.
The fund has moved back ahead of USYC, which reached about $2.9 billion in late August after surpassing BUIDL at roughly $2.7 billion.
This reversal shows how quickly market leadership is changing as institutional demand for tokenized government securities grows.
Tokenized Treasury funds allow investors and institutions to hold short-term US government debt (T-bills) issued as tokens on a blockchain network.
Unlike traditional bond markets, blockchain-based settlements happen quickly, making these products potentially useful for managing idle cash and providing yield-bearing collateral.
USYC represents a share in a Hashnote-based fund that became part of Circle’s business following its acquisition of Hashnote in 2025. The fund expanded from roughly $600 million to nearly $3 billion over the past year.
BUIDL is BlackRock’s USD Institutional Digital Liquidity Fund and is administered by Securitize.
The fund currently holds approximately $2.8 billion, putting it back ahead of USYC after Circle’s fund briefly led the market at approximately $2.9 billion in late August.
The Shift Highlights Growing Market Competition
Competition between the two leading funds points to a maturing tokenized asset market.
Instead of one fund maintaining a permanent lead, institutional investors appear to be comparing multiple blockchain-based Treasury options.
The bigger question is whether institutional interest stays in government bonds or expands into broader on-chain finance.
For now, growth remains concentrated in Treasuries. But the increasing competition could expand institutional adoption of broader real-world assets (RWAs) and on-chain financial products.
