BlackRock BUIDL Reclaims Top Spot in Tokenized Treasury Market

BlackRock’s BUIDL has reclaimed its position as the largest tokenized U.S. Treasury fund, highlighting the growing competition for institutional capital in the real-world asset (RWA) market.

BUIDL now has a market capitalization of roughly $2.8 billion, representing about 18.5% of the $15.1 billion tokenized Treasury market, according to Token Terminal data.

The fund narrowly moved ahead of Circle’s USYC, which briefly claimed the top position after growing from around $600 million to nearly $3 billion over the past year.

BUIDL Takes Back the Lead

BUIDL, officially the BlackRock USD Institutional Digital Liquidity Fund, gives investors blockchain-based exposure to short-term U.S. Treasury securities. The fund is administered by Securitize.

USYC represents a competing tokenized Treasury product from Circle, which incorporated Hashnote's fund following its acquisition of the company in 2025.

USYC reached roughly $2.9 billion in late August, briefly surpassing BUIDL's approximately $2.7 billion. BUIDL has since regained the lead as its market capitalization climbed back toward $2.8 billion.

Why Tokenized Treasuries Are Growing

Tokenized Treasury funds allow investors to hold exposure to U.S. government debt through blockchain-based infrastructure.

The model offers a key advantage over traditional markets: potentially faster and more flexible settlement around the clock. That makes tokenized Treasuries increasingly attractive to institutions seeking yield-bearing assets that can interact with digital financial infrastructure.

The rapid growth of both BUIDL and USYC also shows that institutional investors are increasingly willing to use blockchain-based versions of traditional financial products.

Related: The Clarity Act Slips to September as Banks Build Tokenized Money Anyway

BUIDL and USYC Signal a Growing RWA Market

The battle between BUIDL and USYC is significant because neither product has maintained a dominant lead for long.

That suggests the tokenized Treasury market is becoming a competitive institutional category rather than remaining a niche blockchain experiment.

The broader RWA market could eventually extend this infrastructure into other financial assets, but tokenized Treasuries remain its strongest use case for now.

BlackRock reclaiming the lead therefore matters beyond a single fund's ranking. It shows that institutional competition in tokenized assets is intensifying as blockchain-based finance moves closer to mainstream markets.