Circle Temporarily Flips BlackRock in Tokenized Treasuries Race

Ben Graham · 7 horas atrás

If you have ever sent or received USDC or USDT, then that, right there, is interacting with tokenized products. Stablecoins are a big success, and the first platforms to see this “future” are now making big money. Tether alone makes double-digit billions in profits while being very lean.

In early 2024, Larry Fink of BlackRock said the future will be tokenized. And around that time, the asset manager began tokenizing US treasuries on Ethereum. At the moment, billions worth of treasuries have not only been tokenized but are being used as collateral in DeFi protocols.

Given this trajectory, it is no surprise that the competition to capture the hundreds of millions in Treasury assets is cutthroat. Recent data shows that Circle temporarily flipped BlackRock as the largest Treasury tokenization vehicle in the world.

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Circle And USYC Overtakes BlackRock: What This Means

Over the weekend, USYC, Circle’s Treasury-backed token, reached $1.69Bn in assets, slightly ahead of BlackRock’s BUIDL at $1.684Bn. At press time, however, BUIDL remains the largest vehicle, managing $1.68Bn. Meanwhile, USYC is back to second place with 1.64Bn. Ondo’s USDY is third, managing over $1.28Bn.

(Source: rwa.xyz)

Interestingly, USYC is giving the more established BUIDL a run for its money despite Circle having only released the product on three blockchains: Ethereum, Solana, and BNB Chain. In contrast, BUIDL is available on six chains, including Aptos and Avalanche.

Circle’s USYC is fast gaining traction, thanks in part to Circle’s mission. Unlike BlackRock, which is launching BUIDL to be more of a safe haven for institutions, USYC exists for high-velocity crypto trading. Additionally, holders can use their tokenized treasuries as collateral in DeFi and CeFi. And it seems like more users are flocking to USYC, especially after Circle acquired Hashnote in 2025.

Because of USYC’s interest-accumulating features, traders are opting to “HODL,” aware that the more they accumulate, the higher the token’s valuation becomes. It is mostly because of this character that explains the rapid expansion in value locked. USYC is ideal when used as collateral in smart contracts because it earns a yield that doesn’t need to be adjusted for payouts. On the other hand, the BUIDL token is always pegged at $1. Any interest accrued is paid out as new tokens at the end of every month.

USYC will also likely overtake BlackRock’s BUIDL in the coming week, especially if it widens its distribution rails. After partnering with Binance, institutional traders who could mint at least $100,000 of the token were free to use it as collateral when trading futures and derivatives. Anyone who wants to use BUIDL as collateral has to mint at least $5M of the asset, locking out otherwise willing mid-tier institutional traders and investors.

USYC @BNBCHAIN

USYC is a tokenized money market fund that accrues daily yield via token price increases and redeems to/from USDC onchain.

Eligible BNB Chain developers can now integrate yield-accruing collateral for lending, margin, and vaults, with daily pricing and onchain… pic.twitter.com/gGAEHf0uvh

— Circle (@circle) November 19, 2025

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What’s The Way Forward? Tokenization Explosion?

For what’s clear, tokenization is here. Not only are US treasuries being tokenized en masse. Relatable assets, mostly fiat, are now finding their way to popular chains. Trackers show that over $313Bn worth of stablecoins are now in circulation in Ethereum, Solana, Avalanche, and other platforms. Some of these stablecoins also earn a yield just like tokenized treasuries, attracting big money.

(Source: Coingecko)

As it is, this timing matters. While crypto prices swing and stablecoin yields sit near zero, big players want something safer that still earns interest. Tokenized Treasuries and fiat fit that need, and the race to control this market has just turned. At a macro level, this rapid tokenization signals a shift. Crypto finance now borrows tools from traditional markets, and Wall Street firms compete not on logos, but on how well their products actually work on-chain.

Circle CEO Jeremy Allaire believes tokenization sets the foundation for a new programmable financial system where smart contracts handle complex operations. Out of this economic system, stablecoins and tokenized assets, including treasuries, find a “neutral “infrastructure. Here, Fink said, a common platform will unify the launching of institutional-grade real-world assets.

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