BlackRock’s BUIDL reclaimed the largest tokenized US Treasury fund spot with about $2.8 billion in market cap, representing ~18.5% of the $15.1 billion tokenized Treasury market and narrowly edging Circle’s USYC which briefly reached roughly $2.9 billion in late August. The quick leadership shifts and concentrated growth in tokenized Treasuries signal rising institutional adoption and competition in crypto RWA products, suggesting maturation of on-chain Treasury funds and potential spillover into broader DeFi and tokenized asset markets.

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In Brief

BUIDL's $2.8 billion market cap now leads all tokenized US Treasury funds.
The fund edged out Circle's USYC just over a week after losing the lead.
Tokenized Treasuries have grown to a $15.1 billion market, Token Terminal data shows.

BlackRock’s tokenized US Treasury fund, BUIDL, has reclaimed the top spot among products of its kind, with a market capitalization of roughly $2.8 billion.

Token Terminal data shows BUIDL now holds about 18.5% of the $15.1 billion tokenized Treasury market, narrowly ahead of Circle’s USYC.

A Fast-Changing Leaderboard

Tokenized Treasury funds let institutions hold short-term US government debt on a blockchain. Settlement happens around the clock, instead of the multi-day cycles typical of traditional bond markets.

BUIDL Regains Its Position as the Largest Tokenized U.S. Treasury FundToken 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
— Wu Blockchain (@WuBlockchain) August 31, 2026

That structure has made them a popular option for institutions parking idle cash or posting yield-bearing collateral.

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

It reached roughly $2.9 billion by late August, edging past BUIDL’s $2.7 billion, according to Token Terminal data. It then lost the lead again this week.

BUIDL is BlackRock’s USD Institutional Digital Liquidity Fund, administered by Securitize. USYC, meanwhile, represents a share in Circle’s Hashnote-based fund, which Circle folded into its stablecoin business after acquiring Hashnote in 2025.

Why the Swap Matters

Neither fund has held the lead for long, and that instability is itself notable. It suggests institutions are actively comparing competing Treasury products rather than settling on a single default option.

That competition signals this corner of the tokenized asset market is maturing into a genuine, contested category. It is no longer a niche dominated by a single early mover.

The bigger question is whether institutional interest stays confined to government bond products. It could instead spread into other parts of on-chain finance.

So far, the growth has stayed concentrated in Treasuries, even as the broader real-world asset (RWA) sector expands.

Read the article at BeInCrypto