Key Notes
- The exchange’s new token enables simultaneous yield generation and margin trading, solving the liquidity-versus-returns dilemma.
- VIP members can swap between BYUSDT and Flexible Easy Earn accounts without fees, with hourly reward accrual and daily distributions.
- This launch reinforces Bybit’s strategic focus on stablecoin utility expansion following its recent Circle partnership for USDC integration.
Dubai-based cryptocurrency exchange Bybit has announced the launch of BYUSDT, a proprietary coin that tokenizes USDT Flexible Easy Earn balances for margin trading while still generating daily yield.
The new token allows Bybit VIP account holders to tokenize their staked Flexible Easy Earn balances — USDT holdings earmarked for yield earnings — for 1:1 margin trading. According to a Dec. 12 press release, users can swap between BYUSDT and their USDT Flexible Easy Earn accounts seamlessly with no fee for manual swaps, and BYUSDT rewards will accrue hourly with daily payouts.
DeFi-style Margin Trading
The launch of BYUSDT puts Bybit in rare territory. While similar USDT-based products do exist, they appear few and far between in the centralized exchange world. Derebit, for example, has a similar product in its yield-bearing staking coins, but Bybit’s token has the distinction of functioning directly with the platform’s built-in staking rewards program.
Meanwhile, Kraken’s “Kraken Rewards” program allows margin trading and features similar rewards program integration to the BYUSDT offering, but whereas Bybit rolls the entire rewards platform into its new program, Kraken Rewards only offers margin trading on specific types of rewards.
The primary benefit to Bybit’s new tokenized rewards trading token is capital efficiency. Prior to its launch, Bybit VIP account holders who wanted to stake their USDT had to choose between locking assets up to earn daily yields or keeping them liquid for margin trading.
BYUSDT allows holders to push both positions, earning daily yields for staked USDT and trading dividends for market play.
Bybit is Doubling Down on Stablecoins
Bybit appears to be betting big on the stablecoin market. The BYUSDT product and platform demonstrates its commitment to providing extended utility to Tether holders and, as Coinspeaker reported on Dec. 9, the exchange has also shored up its position with Circle through a strategic partnership designed to proliferate the USDC stablecoin throughout the Bybit stack.
Specifically, the Circle partnership is focused on enhancing USDC liquidity across spot and derivatives markets, extending existing fiat-to-crypto on/off-ramps, and expanding USDC integration throughout Bybit platform services such as Bybit Card, Bybit Earn, and Bybit Savings.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Tristan is a technology journalist and editorial leader with 8 years of experience covering science, deep tech, finance, politics, and business. Before joining Coinspeaker, he wrote for Cointelegraph and TNW.
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Source: https://www.coinspeaker.com/bybit-byusdt-tokenized-usdt-margin-trading-yield/
