Bybit expands access as byusdt token opens to retail traders after VIP phase

Retail traders on Bybit can now access the byusdt token, a proprietary asset that turns yield-bearing balances into usable trading margin on the exchange.

Bybit extends BYUSDT beyond VIP clients

Bybit, the world's second-largest cryptocurrency exchange by trading volume, has opened its BYUSDT product to eligible retail users after an initial rollout limited to VIP clients, according to an announcement shared with Finbold on January 16. The move follows a phased launch that tested demand and infrastructure with higher-tier accounts.

The token lets users convert USDT Flexible Easy Earn balances into a tokenized asset that can serve as trading margin while continuing to generate yield. Moreover, the structure is designed to help users keep their passive income stream active without sacrificing access to liquidity for trades.

Key features and mechanics of BYUSDT

BYUSDT allows participants to earn yield through USDT Flexible Easy Earn and, at the same time, use the token as margin within Bybit's Unified Trading Account (UTA). According to the exchange, the token carries a 100% collateral value ratio for margin trading, so users can deploy it as collateral without losing yield generation on the underlying position.

The token can be swapped on a one-to-one basis with USDT Flexible Easy Earn, with no lock-up periods and no depegging risk highlighted by the platform. That said, while there are no minting or redemption fees for a limited period after launch, Bybit notes that certain service fees may still apply when swapping or redeeming the token.

Manual USDT repayments within the UTA using BYUSDT, as well as liquidation settlements, are processed at a 1:1 rate and incur no additional fees. However, users should still review the exchange's fee schedule to understand how related services might affect their overall trading costs.

Bybit positions BYUSDT as a capital-efficiency tool

In the official statement, Jerry Li, Head of Financial Products and Wealth Management at Bybit, said the retail opening of BYUSDT is aimed at boosting capital efficiency on the platform. He argued that users can earn yield while trading, without compromising access to funds deployed as margin.

Li added that the initiative reflects Bybit's broader financial innovation strategy and could encourage traders to rethink how they allocate assets on the exchange. Furthermore, he framed the product as a way for clients to pursue both yield and active trading from the same pool of capital.

How users can access and use BYUSDT

To start, users deposit USDT into Flexible Easy Earn to begin generating yield. They can then swap those balances into BYUSDT within their Unified Trading Account for use as trading margin. This workflow is intended to streamline the process of turning savings balances into margin collateral.

Rewards accrue hourly based on effective BYUSDT holdings and are distributed daily to users' UTAs in BYUSDT. However, accrual and distribution are both subject to the product's terms, and users must maintain the relevant balances to continue receiving returns.

BYUSDT is available to users eligible for Bybit Savings services who hold a Unified Trading Account and have completed Identity Verification Level 1. The byusdt token is not supported for Islamic accounts or for accounts with active institutional loans, and the exchange signals that further eligibility requirements may apply.

Eligibility, limitations, and further information

Islamic accounts and accounts that carry active institutional loans are excluded from using BYUSDT under the current framework. Moreover, Bybit emphasizes that only users who satisfy its Bybit Savings eligibility criteria and verification standards can participate.

Full terms and conditions, including any updates to fees, eligibility rules, or yield parameters, are available on Bybit's website. In summary, the product aims to act as a tokenized margin asset for users seeking to combine yield strategies with active trading through Bybit's Unified Trading Account structure.

Overall, Bybit's retail rollout of BYUSDT underscores the exchange's effort to merge savings-style products with margin trading, giving verified participants another tool for managing capital and liquidity on a single platform.