BlackRock's BUIDL Overtakes Circle's USYC in Tokenized Treasury Market

In a recent revelation, BUIDL, BlackRock’s USD Institutional Digital Liquidity Fund has become the second largest tokenized U.S. Treasury fund.

This moment is important because BUILD has narrowly overtaken Circle’s USYC. However, besides the competition, the growing market for tokenized real-world assets (RWAs) is what is stealing the spotlight.

According to Token Terminal’s data, the entire tokenized U.S. Treasury market is worth about $15.1 billion. In this, BUIDL has around $2.8 billion, giving it approximately 18.5% of the market. That means almost one-fifth of all tokenized Treasury assets are by BUIDL.

On the other hand, USYC experienced very rapid growth in 2025, increasing from roughly $600 million to nearly $3 billion. In fact, by late August 2026, it reached around $2.9 billion, slightly above BUIDL’s approximately $2.7 billion.

However, at press time, Sky’s uSDS was ranking on top, worth $4.4 billion, followed by BUILD with $2.28 billion. Interestingly, Tether’s XAUT was at the third spot with $2.8 billion, and the fourth spot was reserved by Circle’s USYC with $2.28 billion.

However, it’s important to note that XAUT falls under tokenized commodities instead of tokenized funds.

This suggests that except for uSDS and XAUT, the other two RWAs are narrowly surpassing each other. However, since the difference between them is so little, new institutional inflows or withdrawals can quickly change the current game.

Given BlackRock is usually the one to record the highest inflows and outflows, changing the total of the cumulative Bitcoin [BTC] and Ethereum [ETH] ETF flows, this outpacing may or may not last long.

This coincided with BlackRock recently launching its tokenized money market funds, BSTBL on Ethereum and BRSRV on Solana [SOL]. The funds are designed to serve as reserve assets for stablecoins.

This matters because stablecoins now represent roughly $305 billion, making them a major source of on-chain liquidity.

By offering the same type of institutional product on both Ethereum and Solana, BlackRock is effectively giving capital access to both ecosystems. At the same time, the asset manager is also reinforcing the ETH vs. SOL competition for liquidity.

• By late August, USYC had reached around $2.9 billion, slightly above BUIDL’s approximately $2.7 billion.
• Now BUILD has narrowly overtaken USYC, indicating growing competition.