Bybit, one of the most widely used exchanges in the past year, is migrating its options platform to Tether (USDT). Paolo Ardoino, the CEO of Tether, Inc., stated this would allow Bybit to gain access to unprecedented liquidity.
Bybit will switch its options and linear expiry futures contracts to Tether (USDT). The platform will stop issuing new USDC-settled contracts after February 26, with the goal of increasing platform liquidity. Bybit’s move arrives at a time when USDC usage is growing on both centralized and decentralized markets, while USDT is being divested, especially from Euro area exchanges.
Paolo Ardoino, CEO of Tether, Inc., suggested the move will bring additional liquidity to Bybit.
ByBit is migrating its Options platform to Tether USDT 🔥
Unmatched liquidity for institutional customers.Thanks for the support ♥️ https://t.co/LuKbvMpoJ6
— Paolo Ardoino 🤖🍐 (@paoloardoino) February 14, 2025
All of the already existing USDC contracts will continue their usual trading, though ByBit will be careful not to create USDT contracts that expire on the same date as USDC products. This is to ensure the liquidity is not fragmented and all contracts remain well-funded with no confusion.
The contracts affected include SOLUSC and ETHUSDC futures, which will be replaced over the coming weeks as they expire. The basic trading rules and parameters, fees, and margin levels for USDT-settled contracts will be similar to the USDC versions. For Unified Trading Account (UTA) holders, hedging between the two types of options and futures will be supported. For some accounts in Portfolio Margin mode, the hedging will also be possible in its riskier margin version, until all USDC contracts expire.
Bybit not affected by USDT limitations
Bybit is making a shift in the opposite direction, while most services switch to USDC. The reason for this is that the exchange gains most of its traffic from the Russian Federation.
Bybit receives most of its site traffic from the Russian Federation, where USDT usage is not restricted. | Source: Semrush
For that reason, USDC may pose a bigger threat of potential sanctions or wallet freezes. For now, the token has seen only limited address blacklisting, but there are still skeptical users that switch to other assets.
USDT remains one of the most liquid stablecoins, despite the recent regional limitations. The token increased its supply to $145.2B, while USDC remains at $54.9B. The leading stablecoin remains more liquid, retaining its leading position in the Ethereum ecosystem. At the same time, big parts of the supply of USDC have shifted to Base and Solana.
Bybit is also posting one of its highest volumes to date, boosted by the 2024 bull market. The exchange is one of the few to post results competing with Solana. The market carries $22.2B in daily trading volumes, with 648 pairs on its derivative market.
The most active pairs are centered around Bitcoin (BTC) and Ethereum (ETH), already settling against USDT. The stablecoin dominates both the derivative and spot markets on Bybit, making the USDC products a niche that is now being divested.
Bybit tries to regain legal status in Europe
Despite using USDT for settlement, Bybit has not given up on regaining its status as a reliable exchange for the Euro area. Bybit hopes to gain a MiCA license, which still means it would have to limit some of its USDT products for European traders.
Recently, Bybit has been removed from the blacklist of the French financial authorities (AMF) after years of attempts to become compliant. Ben Zhou, co-founder and CEO of the exchange, broke the news on X, with the hopes of expanding activities as a legalized exchange in the Euro area.
After more than 2 years of working with the French regulator through multiple remediation efforts, BYBIT is now officially removed from France AMF blacklist. MiCA license next. pic.twitter.com/irPf5bOSBp
— Ben Zhou (@benbybit) February 14, 2025
Bybit remains a regionally limited exchange, which has been cut off from some of the main crypto markets due to regulatory restrictions. The service remains restricted for the USA, Canada, mainland China, France and the United Kingdom, as well as most of the sanctioned countries and territories with restricted access to crypto trading.
Bybit has an 88/100 safety rating based on the CER security system. Despite the risk and restrictions, the centralized exchange was often selected for its easy listings, tapping the latest token trends almost immediately. Bybit remains risk-aware, recently declining to list and support Pi Network, which other centralized exchanges are also restricting.
