Circle USYC Becomes Top Tokenized Treasury Fund In 2026

Circle’s U.S. Yuan Certificate (USYC) has surged to a market capitalization of approximately $2.9 billion, officially overtaking BlackRock’s BUIDL fund, which currently stands at $2.7 billion. This shift highlights the rapid expansion of the tokenized U.S. Treasury market, which has grown by 107% year-over-year to reach a total valuation of $15.2 billion. Data from rwa.xyz and DefiLlama indicates that tokenized treasuries now account for more than half of the entire real-world asset (RWA) sector. Institutional demand is primarily driven by the need for on-chain yield and the ability to utilize these tokens as 24/7 collateral for repo, lending, and derivatives protocols. Unlike traditional stablecoins, USYC operates through regulated channels with Circle acting as a transfer agent, providing a secure bridge between traditional finance and blockchain settlement. The growth reflects a broader trend of asset managers and fintechs seeking to improve capital efficiency by unlocking funds during non-standard trading hours. As regulatory clarity improves across the U.S., EU, and Hong Kong, the focus is shifting toward enhancing interoperability between fund providers and increasing secondary market liquidity.