Tokenized US Treasuries surpass $10 billion, USYC overtakes BUIDL

Tokenized U.S. Treasuries have surpassed $10 billion in total value, marking a shift from proof-of-concept experimentation to live financial infrastructure. In a notable development, Circle’s USYC has edged past BlackRock’s BUIDL to become the largest tokenized Treasury product on the market.

As of Jan. 22, USYC holds $1.69 billion in assets under management, about $6.14 million (0.36%) more than BUIDL. Over the past 30 days, USYC expanded by 11% while BUIDL contracted by 2.85%, signaling a clear divergence in net flows rather than a simple branding battle.

USYC’s edge comes largely from distribution and collateral integration. The product is embedded in exchange collateral rails, including Binance’s off-exchange collateral framework for derivatives trading. Its yield structure, which accumulates returns directly into the token’s value, also fits more smoothly into automated margin and collateral systems than BUIDL’s payout distribution model.

Access plays a major role as well. USYC features lower minimum investment thresholds and is open to a broader base of non-U.S. institutions, family offices, and trading firms. BUIDL, by contrast, is limited to U.S. Qualified Purchasers and requires a significantly higher minimum, narrowing its addressable market within digital asset–native finance.

The $10 billion milestone highlights how tokenized Treasuries are evolving into a default yield-bearing collateral layer on blockchain rather than a niche experiment. Competition in the sector is now less about brand recognition and more about infrastructure integration, capital efficiency, and reducing operational friction for institutions deploying on-chain collateral.