BlackRock’s BUIDL fund has reclaimed the top position among tokenized US Treasury products, reaching a market capitalization of about $2.8 billion as of August 31. The fund has narrowly moved ahead of Circle’s USYC after the two products exchanged the lead within a week.
Data from Token Terminal puts BUIDL at about 18.5% of the $15.1 billion tokenized US Treasury market. Issued through Securitize, BUIDL gives qualified institutional investors onchain exposure to short-term US government debt, while blockchain-based ownership allows the investment to be transferred and settled more efficiently.
BUIDL stands for the BlackRock USD Institutional Digital Liquidity Fund. The fund is administered by Securitize and invests in short-term US Treasury securities. Instead of directly holding the government bonds on a blockchain, the fund keeps the underlying assets offchain while blockchain tokens represent investors’ ownership.
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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That structure is becoming increasingly attractive to institutional investors. Tokenized Treasury products can offer the yield of government debt while making the investment more programmable and easier to move between blockchain-based platforms.
For example, tokenized Treasury assets can potentially be used as collateral in decentralized finance. Investors can also transfer them between counterparties without relying entirely on traditional banking hours and settlement processes.
The size of the overall market shows how quickly the sector has grown. Token Terminal estimates that tokenized US Treasury products now represent about $15.1 billion, making the market an increasingly important part of the broader real-world asset tokenization trend.
But BUIDL’s return to the top shows how competitive the market has become. Circle’s USYC briefly overtook BUIDL late in August, reaching roughly $2.9 billion compared with BUIDL’s $2.7 billion at the time. BUIDL has now moved ahead again, although the difference remains relatively small.
USYC itself has grown rapidly over the past year, rising from roughly $600 million to almost $3 billion. The product is linked to Hashnote, the tokenization company acquired by Circle in 2025.
The rivalry therefore represents more than a contest between two investment products. It puts BlackRock, the world’s largest asset manager, against Circle, a major stablecoin company, as both target institutional demand for blockchain-based dollar assets.
The appeal of tokenized Treasuries is relatively straightforward. Traditional Treasury investments can generate income, but moving and settling them still depends heavily on established financial infrastructure. Tokenization brings a blockchain layer to the process, potentially allowing ownership and settlement to happen around the clock.
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