Bybit launches BYUSDT to tokenize staked USDT for margin trading
Bybit has launched BYUSDT, a 1:1 token that converts USDT held in the exchange’s Flexible Easy Earn staking product into a tradeable token for margin collateral while preserving yield. Available to VIP account holders, BYUSDT can be swapped with Flexible Easy Earn USDT instantly and without manual-swap fees; rewards accrue hourly and are paid daily. The product lets staked USDT remain yield-bearing yet usable as margin, addressing the liquidity-versus-yield trade-off and improving capital efficiency for high-value accounts. The launch follows Bybit’s broader stablecoin push, including a recent Circle partnership to deepen USDC integration across services. Comparable offerings among centralized exchanges are rare, with only partial parallels in Kraken Rewards and Deribit. Primary keywords: BYUSDT, Bybit, USDT, margin trading, stablecoin utility.
Bullish
Tokenizing staked USDT into a tradeable, yield-bearing collateral increases the utility and liquidity of USDT on Bybit. For traders, BYUSDT reduces the capital cost of maintaining yield while keeping margin capacity, which can raise demand for USDT-denominated trading and leverage on Bybit. Short-term: likely modest bullish pressure on USDT usage within Bybit (higher on-platform stablecoin circulation) rather than direct price shock to USDT itself; traders may shift balances into BYUSDT, boosting platform activity. Long-term: if adopted broadly, the product could increase stablecoin velocity and trading volumes on Bybit, reinforcing USDT’s centrality in exchange margin markets. Risks that temper the bullish view include limited availability (VIP-only initially), potential operational or smart-product execution issues, and competition from other exchanges’ reward/margin features. Overall, the news signals a positive utility improvement for USDT on Bybit and is likely to support bullish on-platform demand dynamics.