Bybit has rolled out a new product called BYUSDT that lets eligible VIP customers turn their USDT Flexible Easy Earn balances into trading margin without giving up the yield those balances generate. The token, developed entirely in-house by the exchange, represents a direct 1-to-1 claim on the USDT sitting in users’ Flexible Easy Earn accounts and is treated with a 100 percent collateral value ratio inside Bybit’s Unified Trading Account, meaning VIP traders can keep earning while using the same funds to support their trades.
Unlike many synthetic margin solutions, BYUSDT can be swapped back and forth with USDT Flexible Easy Earn at a fixed 1-to-1 rate and carries no lock-up period, which Bybit says removes depegging risk because the conversion rate never changes. The exchange is waiving minting and redemption fees for a limited time after launch, though a service fee may still apply when swapping or redeeming BYUSDT via the product page; manual repayments in the Unified Trading Account and liquidation settlements using BYUSDT convert back to USDT at parity with no fee.
The yield mechanics mirror those of USDT Flexible Easy Earn (excluding any platform reward APR). Rewards accrue hourly based on effective BYUSDT holdings, with only full-hour balances counted, and are distributed once a day at roughly 12:30 a.m. UTC in the form of BYUSDT deposited to the user’s Unified Trading Account. If a swapping fee applies, Bybit notes it will also apply to the yield conversion.
Trade with Yield
BYUSDT became available to eligible VIP users starting at 2 p.m. UTC on December 12, and Bybit plans to follow the product launch with a BYUSDT Trading Competition beginning at 10 a.m. UTC on December 15. The competition carries a total prize pool of 700,000 USDT and is governed by separate campaign rules and eligibility criteria; only trades executed during the official competition period will count toward rewards.
The move is another example of Bybit building products that bridge passive yield and active trading, an effort the company frames as part of its broader push to make decentralized finance primitives more accessible to a mainstream trading audience. Bybit, which says it serves a global community of more than 70 million users and ranks as the world’s second-largest exchange by trading volume, has in recent months been expanding its Earn and VIP offerings and running aggressive promotional programs to attract liquidity.
For VIP users who manage both lending and trading books, BYUSDT promises a more elegant balance between liquidity and returns: rather than choosing between leaving funds in a yield product or pulling them out to use as margin, they can now keep a yield-bearing position live while putting that same capital to work on the trading desk.
As always with new structured products, traders should weigh the operational details, including any applicable swapping fees and the specific campaign rules for the competition, before converting funds. Bybit’s BYUSDT arrives amid a wave of product launches across the industry that blend staking, yield, and tradability, and it shows how exchanges are increasingly designing instruments to let customers optimize capital efficiency without closing one door to open another.
