Bybit, recognized as the world’s second-largest cryptocurrency exchange by trading volume, has launched a new proprietary token, BYUSDT. This token is developed entirely in-house and is available exclusively to VIP users. The introduction of BYUSDT allows eligible participants to convert their USDT Flexible Easy Earn balances into trading margin while continuing to earn yield.

BYUSDT offers a 1-to-1 claim on users’ USDT held in Flexible Easy Earn and maintains a 100% collateral value ratio for margin trading within Bybit’s Unified Trading Account. This structure is designed to enable VIP users to maintain their yield-generating positions while using the same balance as trading margin, eliminating the need to choose between liquidity and returns.

BYUSDT Features and Benefits

The BYUSDT token can be swapped at a fixed 1-to-1 rate with USDT Flexible Easy Earn positions. There is no lock-up period, and the conversion rate remains constant, preventing any depegging. Bybit is waiving minting and redemption fees for a limited period after launch. However, a service fee may apply when swapping or redeeming BYUSDT on the BYUSDT page, including during yield conversion.

Manual USDT repayments in the Unified Trading Account using BYUSDT, as well as liquidation settlements, incur no fee and convert 1-to-1 back to USDT. The yield mechanism for BYUSDT follows the same annual percentage rate structure as USDT Flexible Easy Earn, excluding any platform reward APR. Rewards accrue hourly based on effective BYUSDT holdings, and only balances held for the full hour are counted. Yield is distributed once per day, around 12:30 a.m. UTC, and is paid in BYUSDT to the user’s Unified Trading Account.

Upcoming BYUSDT Trading Competition

The BYUSDT product will be available starting at 2 p.m. UTC on December 12, allowing eligible VIP users to mint, hold, and use BYUSDT in accordance with product terms and platform rules. Additionally, a BYUSDT Trading Competition with a total prize pool of 700,000 USDT is scheduled to begin at 10 a.m. UTC on December 15. The competition will be governed by independent campaign rules and eligibility criteria, and only trading activity during the official competition period will be counted toward rewards.

Restrictions may apply, and full terms and conditions are available here. It is important to note that BYUSDT may be unavailable or restricted in certain jurisdictions due to regulatory requirements.

Why This Matters: Impact, Industry Trends & Expert Insights

Bybit has launched a new proprietary token, BYUSDT, exclusively for VIP users, enabling them to convert their USDT holdings into trading margin while retaining yield. This launch is set to enhance Bybit’s appeal to high-net-worth individuals by offering a unique blend of liquidity and yield-generation capabilities.

Recent industry reports indicate that yield-bearing stablecoins are experiencing significant growth, with market values surging and institutional adoption accelerating. This aligns with Bybit’s introduction of BYUSDT, which enhances yield-generation opportunities for its VIP users.

A report from AInvest highlights that Bybit’s launch of BYUSDT is likely to increase on-exchange liquidity and attract speculative trading volumes. This supports the potential market impact of the BYUSDT launch, as it may lead to increased trading activity and liquidity on the platform.

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