BlackRock's BUIDL Regains Crown in Tokenized Treasury Market

BlackRock's BUIDL tokenized US Treasury fund has climbed back to the leading position among similar products, with a market capitalization around $2.8 billion.

According to Token Terminal, BUIDL now accounts for roughly 18.5% of the $15.1 billion tokenized Treasury market, edging past Circle's USYC by a narrow margin.

A Fast-Changing Leaderboard

Tokenized Treasury funds enable institutions to hold short-term US government debt on a blockchain. Settlement occurs around the clock, as opposed to the multi-day cycles typical of conventional bond markets.

BUIDL Regains Its Position as the Largest Tokenized U.S. Treasury Fund

Token Terminal data shows that BUIDL, a tokenized U.S. Treasury fund issued by Securitize, has a market capitalization of approximately $2.8 billion, accounting for 18.5% of the $15.1 billion market. It has… pic.twitter.com/ekGaLMt0jz

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This structure has made them a favored choice for institutions parking idle cash or posting yield-bearing collateral.

USYC held the top position only briefly. The fund expanded from about $600 million to nearly $3 billion over the past year.

It reached approximately $2.9 billion by late August, surpassing BUIDL's $2.7 billion, based on Token Terminal data. It then relinquished the lead again this week.

BUIDL is BlackRock's USD Institutional Digital Liquidity Fund, managed by Securitize. USYC, in contrast, represents a stake in Circle's Hashnote-based fund, which Circle integrated into its stablecoin business after acquiring Hashnote in 2025.

Why the Swap Matters

Neither fund has retained the lead for long, and this volatility is itself noteworthy. It indicates that institutions are actively comparing competing Treasury products rather than settling on one default option.

This competition suggests this segment of the tokenized asset market is evolving into a genuine, contested category. It is no longer a niche dominated by a single early mover.

The broader question is whether institutional interest remains limited to government bond products. It could instead expand into other areas of on-chain finance.

So far, growth has remained concentrated in Treasuries, even as the wider real-world asset (RWA) sector grows.