Bybit Expands BYUSDT to All Eligible Users, Allowing 1:1 USDT Margin With Yield

Bybit has expanded access to its new tokenized USDT product, BYUSDT, announcing today that the asset is now available to eligible retail users following a successful early launch for VIP customers. The product, which was first made available to Bybit VIPs on December 12, 2025, converts USDT Flexible Easy Earn balances into a token that can be used as trading margin while still generating yield.

The launch aims to give traders what Bybit describes as “capital efficiency without compromise.” BYUSDT operates as a 1-to-1 tokenized representation of USDT Flexible Easy Earn deposits that can be swapped into the platform’s Unified Trading Account (UTA) and used for margin trading while retaining the original yield from Easy Earn. According to Bybit, the token carries a 100 percent collateral value ratio for margin trading, enabling users to tap liquidity without removing funds from an interest-bearing product.

BYUSDT Goes Retail

Rewards on BYUSDT accrue hourly based on effective BYUSDT holdings and are distributed daily, with payouts arriving in users’ UTAs at approximately 12:30 a.m. UTC. Bybit is promoting several customer-friendly features at launch: instant swaps at a 1-to-1 rate with no lock-up periods or depegging risk, and a temporary waiver of minting and redemption fees for a limited time after retail launch.

That said, Bybit notes that standard service fees may still apply when swapping or redeeming BYUSDT and during certain yield conversion actions. The company also confirmed that manual USDT repayments in the UTA using BYUSDT and liquidation settlements will be fee-free and convert back to USDT at a 1-to-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. We believe financial innovation like BYUSDT will inspire traders to rethink their asset deployment strategy on Bybit: this is where you could have it all,” said Jerry Li, Head of Financial Products and Wealth Management at Bybit.

The mechanics are straightforward: users deposit USDT into Flexible Easy Earn to begin earning yield, then swap those Easy Earn assets into BYUSDT within their Unified Trading Account whenever they choose. That BYUSDT can immediately serve as margin for trades, allowing simultaneous participation in yield-generation and leveraged trading.

BYUSDT will be available only to Bybit users who are eligible for Bybit Savings services, hold a Unified Trading Account, and have completed Identity Verification Level 1. Islamic Accounts and accounts with active institutional loans are excluded, and Bybit says other restrictions may apply.

Founded in 2018, Bybit is the world’s second-largest cryptocurrency exchange by trading volume and serves a global community of more than 80 million users. The firm positions BYUSDT as part of a broader push to bridge traditional finance and decentralized finance, offering tools that let traders and savers do both without having to choose one over the other.