BlackRock's BUIDL Reclaims Top Spot in Tokenized US Treasury Funds
BlackRock's BUIDL has retaken the lead in the tokenized US Treasury market with a $2.8 billion market cap, edging out Circle's USYC after a brief period at the top.
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BlackRock's tokenized US Treasury fund, BUIDL, has reclaimed the number one position in its category after a brief spell in second place behind Circle's USYC.
BUIDL Back on Top
BUIDL has a market capitalization of roughly $2.8 billion, giving it about 18.5% of the $15.1 billion tokenized Treasury market, narrowly ahead of Circle's USYC, according to Token Terminal data.
BUIDL, formally the BlackRock USD Institutional Digital Liquidity Fund, is issued by BlackRock and operated on-chain through transfer agent Securitize. Each token targets a stable $1 value and accrues daily dividends from short-duration US Treasury bills, repo agreements, and cash.
Tokenized Treasury funds let institutions hold short-term US government debt on a blockchain, with settlement happening around the clock rather than through the multi-day cycles typical of traditional bond markets. That structure has made them a popular vehicle for parking idle cash and posting yield-bearing collateral.
A Rapidly Shifting Race with Circle's USYC
USYC only briefly held the top spot. The fund grew from about $600 million to nearly $3 billion over the past year, reaching roughly $2.9 billion by late August and edging past BUIDL's $2.7 billion, according to Token Terminal data, before losing the lead again this week.
USYC represents a share in Circle's Hashnote-based fund, which Circle folded into its stablecoin business after acquiring Hashnote in 2025. Much of USYC's earlier growth was tied to its use on BNB Chain, with Binance introducing the token as off-exchange collateral for institutional derivatives trading.
Tokenized US Treasuries grew from under $1 billion in early 2024 to over $10 billion by January 2026, and the market has continued expanding since. The category dynamic illustrates that tokenization is not winner-take-all: multiple major players, including BlackRock, Circle, and Ondo, can coexist with different value propositions.
Sources:
Bitcoin Ethereum News: BlackRock's BUIDL Reclaims Top Spot for Tokenized Treasuries
CoinDesk: Circle Overtakes BlackRock in Tokenized Treasuries
Crypto Times: Circle vs BlackRock, $15B Tokenized Treasury Market Enters New Phase
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Soumen DattaSoumen has been a crypto researcher since 2020 and holds a master’s in Physics. His writing and research has been published by publications such as CryptoSlate and DailyCoin, as well as BSCN. His areas of focus include Bitcoin, DeFi, and high-potential altcoins like Ethereum, Solana, XRP, and Chainlink. He combines analytical depth with journalistic clarity to deliver insights for both newcomers and seasoned crypto readers.