Ondo USDY Surpasses BlackRock BUIDL at $2.33 Billion as Tokenized Treasury Race Heats Up

Ondo Finance's tokenized US dollar yield token, USDY, has overtaken BlackRock's BUIDL to become the largest tokenized Treasury fund by size, reaching $2.33 billion. The milestone marks the first time a crypto-native project has surpassed the world's largest asset manager in this category, a segment that has grown rapidly as institutions and protocols move fixed-income assets onto public blockchains. Ondo's USDY runs on Solana, and the achievement underscores how permissionless infrastructure is increasingly competing with Wall Street giants in tokenized real-world assets.

The broader tokenized Treasury market has swelled to an estimated $14.7 billion to $15.65 billion in total value, with BUIDL, Circle's USYC, and USDY among the leading products. The competitive reshuffling at the top reflects accelerating institutional appetite for on-chain yield-bearing instruments that offer near-continuous settlement and programmable use in decentralized finance.

Also on October 21, Malaysia's central bank launched SSDS+, a distributed ledger-based platform for issuing and holding tokenized bonds and sukuk. The platform tracks ownership and transfers of tokenized securities and links to Malaysia's existing RENTAS+ system to settle payments in central bank money, with future plans to support retail bond issuance. The launch adds a sovereign-backed infrastructure layer to the global tokenization trend, signaling that central banks in Asia are moving from pilot programs to operational platforms.