Bybit, the world's second-largest cryptocurrency exchange by trading volume, has officially opened access to its proprietary token BYUSDT for all eligible retail users. This follows a successful VIP-exclusive launch period that began on December 12, 2025.
BYUSDT is a novel financial instrument that tokenizes a user's USDT Flexible Easy Earn balances. It allows these assets to function simultaneously as trading margin within Bybit's Unified Trading Account (UTA) while continuing to generate yield. The token maintains a 100% collateral value ratio for margin trading, meaning users can access liquidity for trades without sacrificing their ongoing returns from the underlying USDT savings product.
Key features of BYUSDT include its 1-to-1 swap rate with USDT in Flexible Easy Earn, with no lock-up periods and no depegging risk. For a limited time post-launch, there are no minting or redemption fees. The platform states that funds are 100% securely backed by Bybit, though standard service fees may apply for swapping or redeeming BYUSDT during yield conversion. Notably, manual USDT repayments in the UTA using BYUSDT and liquidation settlements incur no fee and convert at the 1:1 rate.
"We are excited to open BYUSDT to retail traders. Now they can unlock a new level of capital efficiency and gain the freedom to earn yield while trading without compromise," said Jerry Li, Head of Financial Products and Wealth Management at Bybit. "We believe financial innovation like BYUSDT will inspire traders to rethink their asset deployment strategy on Bybit."
The operational process involves users depositing USDT into the Flexible Easy Earn product to start earning yield. They can then swap these Easy Earn assets for BYUSDT within their UTA at any time to use as trading margin. Yield rewards accrue hourly based on effective BYUSDT holdings and are distributed daily around 12:30 a.m. UTC directly to the user's UTA in BYUSDT.
Access to BYUSDT is available to users who are eligible for Bybit Savings services, have a Unified Trading Account, and have completed Identity Verification Level 1. The service is not available for Islamic Accounts or accounts with active institutional loans.
