Most of the stablecoin market is a dollar liability that pays the issuer, not the holder. A smaller and faster-growing part of it is something else: a share in a fund that holds short-dated government paper, issued on a blockchain, where the yield accrues to whoever holds the token. For an allocator that distinction is the whole subject.
What the data shows
- The three largest tokenized Treasury products carried $5.0bn on 27 February 2026, +5,051.7% over ninety days.
- That is 1.62% of all stablecoin supply, against a market dominated by non-yielding tokens.
- The wrapper is a regulated fund share in each case, so the credit risk is the fund’s holdings rather than an issuer’s balance sheet.
- Redemption terms, not the blockchain, are what decide whether these behave like cash in a stress.
| Product | On chain | 90-day change | Sponsor |
|---|---|---|---|
| BUIDL | $1.9bn | −7.5% | BlackRock, through Securitize |
| USYC | $1.8bn | +47.3% | Circle, formerly Hashnote |
| USDY | $1.3bn | +91.2% | Ondo Finance |
Tokenized Treasury funds on chain, combined
BUIDL, USYC and USDY circulating supply added together, daily, in dollars.
Source: DeFiLlama, daily series. Computed by Institutional Asset Journal.
Why supply is the number that matters
A stablecoin’s circulating supply is the size of a dollar deposit base that settles without a bank in the middle. It grows when somebody hands the issuer dollars and takes tokens, and it shrinks on redemption, so the series is a direct read of whether capital is arriving or leaving. Price is not: a stablecoin trading at a dollar tells you the peg held, not whether anyone wanted it.
How this was measured
- Supply figures are DeFiLlama’s daily circulating series for each issuer and chain, which count tokens in circulation rather than reserves held. A piece dated one day uses observations through the day before, and every figure names the date it belongs to. Circulating supply is not the same as the assets backing it: what an issuer holds against its liability is disclosed on the issuer’s own schedule, and nothing here substitutes for an attestation. Chain figures count tokens native to or bridged onto that chain, so a token bridged between chains appears once on each side of the bridge in the chain view and once in the total.
