Bybit launches USDC-settled spot trading, perpetual, and options

“We have been building throughout the bear market, and have found USDC to be an excellent fit for our operations.”

Bybit has partnered with Circle Internet Financial, the fintech firm that is mostly known as the issuer of USD Coin (USDC) and Euro Coin (EUROC), in order to make Bybit a gateway for retail and institutional USDC-settled products.

Bybit will offer Circle’s services to their users, expand their USDC spot pair listings, and support further awareness for USDC and related products.

The third largest crypto derivatives exchange in the world by volume is equipped with portfolio margin, which lowers margin requirements on hedged positions, and unified accounts that accept BTC/ETH/USDT/USDC as collateral.

The partnership will see Bybit developing and promoting products that support the growth of USDC, such as spot trading, perpetual contracts, and options.

Instant auto-conversions between USD and USDC (or other Circle-issued stablecoins) will also be enabled by the crypto trading platform in a move that further promotes crypto adoption and utility.

More USDC spot pairs and products for retail and institutional clients

Ben Zhou, co-founder and CEO of Bybit, said: “We have been building throughout the bear market, and have found USDC to be an excellent fit for our operations. After the success of our USDC options, it was opportune to further develop our working relationship with Circle, which has a reputation for openness and integrity in their services and development of cutting-edge financial technology. We look forward to offering more USDC spot pairs and products to our retail and institutional clients.”

Jeremy Allaire, co-founder and CEO of Circle, commented: “Over the last year, Bybit has ceaselessly delighted users of USDC with the continued expansion of their innovative product offerings. We are thrilled to have Bybit onboard as a partner in our efforts to promote greater access and adoption for USDC.”

The announcement follows the introduction of USDC options — claimed to be the first stablecoin-margined option contract in the market — in June 2022.

USDC-settled options contract follows the European-style options, which may be exercised only at the expiration date of the option, i.e., at a single pre-defined point in time. It can be traded through the portfolio margin, which adopts a risk based model for experienced traders, including market makers and institutional clients, to increase fund utilization based on the underlying price and volatility.

The roll-out of options product came on the heels of a trial period which examined common feedback in order to improve the user experience of optimization of margin and risk control mechanisms.

Bybit has plans to make Ether and SOL options available soon.