This article was first published on TurkishNY Radio.
The blockchain-based U.S. Treasury sector has now pushed beyond $10.13B in total value, and the top spot has shifted by a razor-thin margin. Circle’s USYC currently holds around $1.69B, slightly ahead of BlackRock’s BUIDL at about $1.684B, based on real-time tracking for on-chain Treasury assets.
This is not the kind of flip that happens because one brand is louder than the other. It happens when the market starts rewarding what works smoothly, especially inside trading and collateral systems where every operational detail is felt.
At the center of the story is a simple idea: the leaders in tokenized treasuries will be the ones that behave like efficient collateral, not just yield products.
Why tokenized treasuries are starting to replace idle cash
Crypto markets used to treat stable assets like parking lots. Funds moved stablecoins in, waited for an entry, then moved them out. That behavior has been changing, and it has changed faster than many expected.
As liquidity matured, institutional trading became more systematic, and derivatives volumes grew, the demand shifted from “where can money sit safely” to “where can money sit and still work.” This is where tokenized treasuries gained an edge, because they can combine predictable short-term government yield with blockchain portability, which is a rare pairing.
The $10.13B market size shows the category is not a side hobby anymore. It is becoming infrastructure that can support margin, settlement, and treasury operations without forcing every participant back through traditional rails.
The lead changed hands, but the reason is not dramatic
On paper, the USYC lead over BUIDL looks minor. In practice, this is how large financial categories often evolve. A small edge appears first in a narrow use case, then the edge becomes a habit, and habits become flows.
USYC has benefited from being integrated in ways that match how institutions actually trade. Circle confirmed that Binance institutional clients can use USYC as off-exchange collateral for derivatives, while maintaining a clean redemption path back into USDC.
Circle Chief Business Officer Kash Razzaghi described the product’s positioning in practical terms, saying, “USYC’s integration with Binance unlocks new possibilities for institutional capital efficiency.
From Binance, Catherine Chen, Head of Binance VIP & Institutional, highlighted the same operational focus, stating, “We are committed to building secure, accessible, and capital-efficient offerings for institutions.”
In plain terms, tokenized treasuries are increasingly being selected based on how well they plug into risk systems, custody structures, and margin workflows.
The mechanical edge: yield that compounds versus yield that pays out
One of the most important differences between USYC and BUIDL is how yield shows up for holders.
USYC is structured so that yield is reflected in the token’s value, which is why tracking data lists its NAV at around $1.11 rather than a flat $1.00.
That design may sound subtle, but it fits the logic of collateral systems. The balance remains simple, and the asset can sit in place while quietly increasing in value, without separate distribution events that introduce extra accounting steps. For traders and institutions, fewer moving parts means fewer operational surprises.
This is where tokenized treasuries stop looking like “crypto yield” and start looking like upgraded cash management.
BUIDL follows a more traditional fund structure. When BlackRock launched it, the firm described the token as aiming for a stable $1.00 price, with dividends accrued daily and paid out to investors monthly.
Both approaches can work, but in fast-moving markets, the accumulating model can feel cleaner for collateral use, especially when positions are posted across multiple venues.
Access and onboarding also decide who wins the flow battle
Structure is not only about mechanics. It is also about who can participate.
BlackRock’s BUIDL launched with an initial minimum investment of $5,000,000, positioning it for a narrower institutional segment.
USYC’s minimum entry has been listed at 100,000 USDC, which opens the door to a broader range of crypto-native institutions and offshore professional investors.
This difference matters because the marginal buyers in tokenized treasuries are often not the largest traditional allocators. They are trading firms, market makers, and funds that manage cash dynamically, and they tend to follow usability first.
Momentum favors Circle, but the contest is far from finished
Recent trend data leans in USYC’s favor. Over the past 30 days, USYC showed growth of roughly 11.12%, while BUIDL posted a decline near 2.86%, suggesting net inflows are currently choosing USYC as the preferred instrument.
Still, BlackRock’s entry into the space remains significant. When BUIDL was introduced, BlackRock Head of Digital Assets Robert Mitchnick framed tokenization as part of a practical roadmap, saying it reflects “the latest progression” in providing solutions that “solve real problems” for clients.
That is an important point, because tokenized treasuries are no longer competing on attention. They are competing on reliability, compliance fit, and integration depth.
Conclusion: the market is choosing the product that feels easiest to use
Circle’s USYC taking the top spot does not mean traditional finance is losing influence on-chain. It means the segment has matured to the point where small design choices can move billions.
In this phase, tokenized treasuries will rise or fall based on how frictionless they are as collateral, how clean the yield model is for active strategies, and how quickly they can scale through real distribution rails. The lead may change again, but the direction is clear: the market is rewarding utility, and utility has a way of compounding.
FAQs
What are tokenized treasuries?
They are blockchain-based tokens that represent exposure to U.S. Treasury assets, designed to offer yield with on-chain portability.
Why did USYC move ahead of BUIDL?
USYC gained traction through collateral integrations and a yield structure that compounds into the token’s value.
How large is the on-chain Treasury market now?
Tracking data shows the category has surpassed $10.13B.
Does this affect Bitcoin or Ethereum prices directly?
Not directly, but deeper on-chain yield tools can influence liquidity and leverage conditions across crypto markets.
Glossary of Key Terms
Off-exchange collateral: Collateral held with a custodian rather than directly on an exchange, while still supporting derivatives trading.
NAV (Net Asset Value): The per-token value of an asset after accounting for underlying holdings and accrued income.
Accrued dividends: Yield that builds daily and is paid out periodically, rather than compounding inside the token value.
Capital efficiency: A measure of how effectively assets can be used for trading, margin, and liquidity without sitting idle.
Collateral rails: The operational pathways that allow assets to be posted, managed, and recognized as margin across trading venues and custody partners.
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