Bybit unveils BYUSDT token to unlock yield-earning margin for retail traders

Bybit is expanding yield options for retail users by introducing the new byusdt token within its ecosystem, aligning trading margin with passive income opportunities.

Bybit launches capital-efficient BYUSDT campaign

On Jan. 28, 2026, cryptocurrency exchange Bybit announced the launch of its “BYUSDT: Turn Your Easy Earn Assets Into Trading Power” campaign, now live for eligible users. The initiative introduces BYUSDT, a tokenized representation of USDT balances placed in Flexible Easy Earn. Moreover, it enables retail traders to earn yield on their stablecoin holdings while using the same capital as margin for trading.

Through the campaign, qualifying users may receive up to an 11.30 percent bonus annual percentage rate on eligible BYUSDT holdings, subject to platform caps and specific terms. This bonus APR sits on top of the underlying Easy Earn mechanism, which continues to accrue yield in the background. However, participation depends on meeting all relevant requirements and regional restrictions set by the exchange.

How BYUSDT works inside Bybit accounts

To access BYUSDT, users first deposit USDT into Flexible Easy Earn, where the balance immediately starts generating yield under the existing savings program. Afterward, that Flexible Easy Earn balance can be swapped to BYUSDT within the Unified Trading Account. The conversion is processed at a fixed 1:1 rate, ensuring that each BYUSDT unit always corresponds to an underlying unit of USDT in Flexible Easy Earn.

Once converted, BYUSDT serves as a tokenized claim on those Flexible Easy Earn USDT balances and can be used solely as trading margin within Bybit’s unified account environment. Importantly, the underlying USDT continues to earn its Flexible Easy Earn yield even while the BYUSDT representation is deployed in active trading strategies. This structure is designed to let users earn yield while trading without fragmenting their capital.

The byusdt token remains fully backed at all times by users’ USDT stored in Flexible Easy Earn and is managed entirely within the Bybit platform. However, BYUSDT does not support on-chain transfers, external deposits, withdrawals, conversions outside the dedicated swap flow, INS loans, or direct spot trading pairs. That said, it is intended to function as an internal margin asset, tightly integrated into the exchange’s risk and account systems.

Yield mechanics and distribution for BYUSDT

Yield on BYUSDT follows the same accrual mechanism as USDT Flexible Easy Earn, with one key adjustment: it excludes any additional platform reward APR. In practice, this means the base yield is determined by the Flexible Easy Earn program, while any promotional rewards tied to other campaigns are not applied to BYUSDT balances. Moreover, this ensures a consistent, rule-based calculation across all participants.

Accrual occurs on an hourly basis, depending on each user’s effective BYUSDT holdings. The resulting yield is then distributed once per day, at approximately 12:30 a.m. UTC, and paid out directly in BYUSDT. Over time, users see their BYUSDT balance grow automatically as earnings compound. However, effective yield outcomes still depend on market conditions, program parameters, and the exact duration of participation.

Retail trader capital efficiency and portfolio management

The introduction of BYUSDT underscores Bybit’s push to enhance retail trader capital efficiency and flexibility. By allowing users to deploy the same USDT both as a yield-generating asset and as trading margin, the exchange aims to reduce idle capital that would otherwise sit unused in separate accounts. Moreover, this design helps traders consolidate their assets under a single, unified balance sheet.

Within Bybit’s unified account structure, BYUSDT simplifies portfolio management by reducing the need to move funds between savings and trading wallets. That said, the feature is tightly integrated with the platform’s risk controls to ensure margin usage is properly monitored. According to Bybit, the initiative supports its broader strategy to build risk-aware trading tools and more accessible yield products for a global user base.

Eligibility, restrictions, and compliance conditions

Access to BYUSDT is limited to users who meet specific savings eligibility identity verification criteria. Participants must be eligible for Bybit Savings services, hold a Unified Trading Account, and complete Identity Verification Level 1. Islamic accounts are explicitly not eligible for this product. Moreover, availability can be restricted in certain jurisdictions, based on local regulations and internal policy decisions.

Regions where BYUSDT access may be limited include, but are not confined to, mainland China, France, Hong Kong, India, Kazakhstan, and Uzbekistan. All participants must adhere strictly to the Bybit Terms of Service. The exchange retains the right to disqualify accounts suspected of dishonest or abusive behavior, to adjust campaign terms without prior notice, and to exercise final interpretation rights over all related rules and outcomes.

About Bybit and its Web3 strategy

Bybit is currently recognized as the world’s second-largest cryptocurrency exchange by trading volume, serving a global community of over 80 million users. Founded in 2018, the platform positions itself as a gateway to a simpler, more open, and more inclusive digital asset ecosystem. Moreover, it has built a reputation around secure custody, diverse marketplaces, and a user-friendly trading interface.

With a strong focus on Web3 development, Bybit collaborates with leading blockchain protocols to provide institutional-grade infrastructure and drive on-chain innovation. Its suite of tools is designed to connect traditional finance with decentralized finance, empowering builders, creators, and enthusiasts across the digital economy. However, as with all crypto services, users are expected to carefully review product terms, regional rules, and personal risk tolerance before engaging.

In summary, BYUSDT brings tokenized USDT margin trading and yield together under one roof, offering retail traders a streamlined way to boost capital efficiency while keeping assets productive inside Bybit’s unified ecosystem.