BlackRock's USD Institutional Digital Liquidity Fund, known as BUIDL, has become the second-largest tokenized U.S. Treasury fund, edging out Circle's USYC in an increasingly competitive market for tokenized real-world assets.
According to Token Terminal data, the entire tokenized U.S. Treasury market is valued at approximately $15.1 billion. BUIDL currently holds around $2.8 billion, representing roughly 18.5% of the market share. USYC experienced significant growth in 2025, expanding from approximately $600 million to nearly $3 billion.
The rankings of major tokenized treasury and commodity products show Sky's uSDS leading with $4.4 billion, followed by BUIDL and Tether's XAUT, a tokenized commodity, each near $2.8 billion. Circle's USYC holds the fourth position with approximately $2.28 billion. The narrow margins between BUIDL and USYC suggest that institutional inflows or withdrawals could quickly shift the competitive landscape.
BlackRock has expanded its institutional offerings beyond BUIDL, recently launching tokenized money market funds designed to serve as reserve assets for stablecoins. BSTBL launched on Ethereum and BRSRV on Solana. This expansion provides institutional capital access to multiple blockchain ecosystems while reinforcing competition between them for liquidity.
The stablecoin market, now representing approximately $305 billion, represents a significant source of on-chain liquidity and reflects growing institutional adoption of tokenized assets.
