The tokenized U.S. Treasury fund under the ticker BUIDL, launched by BlackRock, has once again taken the leading position among similar products. Its assets have grown to approximately $2.8 billion, confirming sustained demand from institutional investors for blockchain-based liquidity management solutions.
Market Dynamics and the Battle for Leadership
According to my analysis of data from the Token Terminal platform, BUIDL now controls about 18.5% of the tokenized bond market, whose total volume stands at $15.1 billion. The fund only slightly edges out Circle's USYC, indicating high competition in this segment.
Tokenized government bond funds allow institutional investors to hold short-term U.S. securities on the blockchain. Transactions run around the clock, without the multi-step cycle that previously stretched over several days. This makes such products a convenient way to deploy idle funds and obtain yield-bearing collateral.
The USYC fund was the leader only briefly. Over the year, its assets grew from approximately $600 million to nearly $3 billion. By the end of August, they reached $2.9 billion—and the fund briefly overtook BUIDL, which stood at $2.7 billion. However, this week BUIDL reclaimed the top spot, sending USYC to second place.
Key Players and Their Strategies
BUIDL is a dollar liquidity fund from BlackRock, managed by Securitize. USYC operates on the Hashnote platform and belongs to Circle—it integrated the fund into its stablecoin business after acquiring Hashnote in 2025.
Neither fund has held the lead for long. Such back-and-forth shows that institutions do not simply pick the first fund they come across; they compare terms and choose among different options. Competition in the tokenized asset segment is a sign that the market is growing and taking shape as a full-fledged category, where no one remains a leader by inertia.
Sector Outlook
The main question now is different: will institutional interest remain limited to government bonds, or will it extend to other instruments of the on-chain finance industry? For now, the market is growing mainly on the back of government bonds, although the entire real-world asset (RWA) tokenization sector also continues to scale.
My expert view: BUIDL's return to the top is not merely a coincidence, but a signal that trust in the BlackRock brand and Securitize's infrastructure remains a key factor for conservative investors. However, USYC's dynamics show that the niche has not yet stabilized, and in the coming months we may see new reshuffles. The tokenized RWA market is in an active stage of formation, and it is competition that will drive its further growth.