Circle, through its USYC fund, has become the largest issuer of tokenized US Treasuries with $3 billion in assets under management, overtaking BlackRock’s BUIDL fund which holds approximately $2.7 billion. Circle acquired Hashnote in January 2025 to obtain the USYC product, which it then scaled using its institutional distribution network and integration with its USDC stablecoin. The tokenized Treasuries market offers investors yield while retaining blockchain-native flexibility. For DeFi protocols, the expansion of high-quality onchain collateral like USYC means the collateral base becomes more closely tied to traditional financial instruments. The concentration of $3 billion in tokenized Treasuries through a single issuer introduces counterparty, smart contract, and regulatory risks.
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