Circle's USYC Overtakes BlackRock in Tokenized Treasury Fund Market

The tokenized US Treasuries market has seen significant growth over the past year, with Circle's U.S. Yuan Certificate (USYC) becoming the largest tokenized treasury fund in 2026. According to data from rwa.xyz and DefiLlama, the total market cap of tokenized US Treasuries reached $15.2 billion, representing a 107% year-over-year growth.

This growth can be attributed to institutional investors seeking reliable and profitable ways to earn on-chain yield with short-duration US government debt. Circle's USYC has been particularly successful in this regard, growing from around $600 million to over $3 billion in market cap over the past year.

Beyond its growth, the tokenized US Treasuries market also offers several benefits to asset managers, exchanges, and fintechs. For instance, these tokens can be used as 24/7 collateral in blockchain settlement, allowing for greater flexibility in investment opportunities outside of traditional trading hours.