Crypto: Circle Tokenized Money Fund USYC Rockets Past $1 Billion as BUIDL Sheds $694M

Key Insights

• Crypto news: Circle USYC grew from $242 million to $1.34 billion since July, a fivefold increase.
• BlackRock’s BUIDL shed $694 million over the past 30 days as institutional users redeemed.
• USYC became the second-largest tokenized money fund, trailing BUIDL by less than $500 million.

Circle’s USYC money market fund surpassed $1 billion in assets under management, reaching $1.34 billion as of December 11, according to rwa.xyz data.

The surge positioned USYC as the second-largest tokenized money fund and narrowed the gap with BlackRock’s BUIDL to under $500 million.

The rapid growth came amid significant outflows at BUIDL. BlackRock’s fund shed $694 million over the past 30 days while USYC added $337 million during the same period.

Crypto News: Binance Partnership Drives Growth for Circle

Circle announced a collaboration with Binance on July 24 that accelerated USYC’s expansion. The partnership enabled Binance institutional customers to hold USYC and use it as off-exchange collateral for derivatives trades.

USYC was kept with supporting banks through Binance Banking Triparty or with Ceffu, Binance’s institutional custody partner.

Through the partnership, the fund was also issued on BNB Chain, which enabled users to explore tokenized traditional assets more seamlessly.

As a result, most of USYC’s assets under management, approximately $1.22 billion, resided on BNB Chain as of December 11. The concentration reflected the fund’s deep integration with Binance’s institutional infrastructure.

Circle grew the tokenized money fund from $242 million in July to $1.34 billion by December 11, a more than fivefold increase in under six months.

The expansion came amid surging demand for tokenized interests in US Treasuries, which nearly doubled since the start of 2025.

USYC offered near-instant fungibility with USDC. The feature enhanced capital efficiency for users who moved between tokenized cash and Treasuries in near real time.

Circle USYC Climbs Rankings Among Tokenized Funds

The asset growth pushed USYC past Franklin Templeton’s BENJI and Ondo’s OUSG in the tokenized money fund rankings.

Circle now operates the second-largest fund in the category, behind only BlackRock’s BUIDL. The gap between the two funds narrowed to less than $500 million after BUIDL’s recent outflows.

The shift marked a significant change in the competitive landscape for tokenized Treasury products.

Kash Razzaghi, Circle’s Chief Business Officer, said back in July that USYC’s integration with Binance unlocked new opportunities for institutional capital efficiency.

He noted the fund’s near-instant redemption into USDC made it a fit for modern collateral use in digital markets.

Catherine Chen, Head of Binance VIP & Institutional, said the integration of USYC into Binance’s trading environment represented a step forward in support for the future of capital markets.

The firm is committed to building secure, accessible, and capital-efficient offerings for institutions.

Crypto News: BlackRock Fund Faces Institutional Redemptions

BUIDL’s outflows stem from large redemptions by a handful of institutional users rather than broad retail withdrawals. The pattern matched BUIDL’s behavior in earlier drawdowns.

The number of BUIDL holders jumped from 94 to 100 during the period, suggesting outflows concentrated among existing large positions rather than mass exits.

This year’s fourth quarter brought a risk-off period across crypto markets. Record outflows hit both spot Bitcoin and Ethereum ETFs as institutional desks reduced risk exposure.

Macro commentary framed BUIDL’s asset moves as part of a broader pattern of investors taking profits on yield products, deleveraging, or rotating among tokenized Treasuries and other real-world assets.

The redemptions did not appear tied to credit concerns specific to BUIDL.

Tokenization analysis throughout 2025 stressed that BUIDL’s flows became increasingly tactical after the fund gained acceptance as collateral on derivatives venues and later on Binance and BNB Chain.

When a tokenized money fund doubled as trading collateral, large cyclical redemptions occurred around stress events, margin calls, and portfolio rehedging.

The divergent flows between USYC and BUIDL illustrated how distribution partnerships and blockchain positioning affected the adoption of tokenized funds.

Circle’s Binance collaboration provided direct access to institutional trading desks on BNB Chain, while BUIDL’s broader multi-chain presence enabled tactical redemptions across various platforms.

The growth trajectory put Circle within striking distance of BlackRock’s lead in the tokenized money fund market.

USYC’s focus on BNB Chain through its Binance partnership has created a distinct competitive advantage in capturing institutional demand for yield-bearing collateral in digital asset markets.