BYUSDT: Elevate your trading strategy with dual-yield power

The BYUSDT token, which was exclusively launched for VIP users, is now available to all Bybit retail users. BYUSDT is a first-of-its-kind asset on the Bybit platform. It represents the tokenized form of your Tether (USDT) Flexible Easy Earn balance, and can simultaneously be used as margin for leveraged trading opportunities on the Bybit platform. By utilizing BYUSDT, you can keep earning yield from your Flexible Easy Earn investment while you trade using the same funds, backed on a 1:1 basis, to meet margin requirements for eligible leveraged trades, including through your UTA and TradFi CFD Account.

BYUSDT takes capital efficiency and asset utilization to a new level by allowing you to reuse the same funds for two distinct, value-added services on Bybit — namely, the guaranteed, low-risk returns of Easy Earn and the profit opportunities of margin trading. 

In this article, we’ll cover everything related to this novel product, from its functional mechanism and use cases to user eligibility and key benefits, as well as special campaigns.

Key Takeaways:

• BYUSDT is a first-of-its-kind Bybit product that lets you use the balance of your USDT Flexible Easy Earn savings plan as margin for leveraged trading on the platform.

• BYUSDT lets you continue earning Easy Earn yield while using the same funds as margin for eligible crypto derivatives and TradFi CFDs.

• The unique BYUSDT product is available to all Bybit retail users with verified identities.

What is BYUSDT?

BYUSDT represents the tokenized version of your USDT balance held in a Bybit Flexible Easy Earn savings plan. You can swap the balance to BYUSDT on a 1:1 basis to use the funds as margin in your Unified Trading Account (UTA). The funds can then be applied to meet margin requirements for eligible leveraged trading products accessible through your UTA. BYUSDT can also be transferred to your MT5 CFD Account for TradFi CFD trading while continuing to generate yield. Redemption is also available at any time on a 1:1 basis.

Bybit Flexible Easy Earn is an investment product that allows you to earn passive income on your idle crypto assets, giving you the flexibility to deposit and withdraw your investment at any time. It offers competitive, though fluctuating, daily yields without any lockup period. By swapping your USDT Easy Earn balance to BYUSDT, you can keep earning yield through that Easy Earn plan and use the same funds as margin for your leveraged trades. In essence, BYUSDT doubles the utility of the same funds, significantly improving capital efficiency.

How does BYUSDT work?

When you hold BYUSDT, your investment earns the same base APR as the applicable USDT Flexible Easy Earn plan. Starting from Mar 2, 2026, you can earn up to 10% APR on your first 100,000 BYUSDT while continuing to trade on a first-come, first-served basis.

Please note that while standard USDT Easy Earn products may include both a base APR and a promotional platform reward APR, the additional platform reward APR does not apply to BYUSDT.

Rewards accrue hourly based on your effective holdings, and only amounts held for the full hour are eligible. Yield is distributed daily to your UTA in BYUSDT at approximately 12:30AM UTC. If a swapping fee applies, it will also apply to the yield conversion.

It should also be noted that BYUSDT is a different asset from USDT, so if you incur USDT losses in your UTA, interest obligations still apply.

When used as margin through your UTA, BYUSDT has a collateral value ratio (CVR) of 100%. For example, when you can swap 1,000 USDT to 1,000 BYUSDT, an equivalent of 1,000 USDT will be used to meet margin requirements in your leveraged trades.

Who is eligible to earn from BYUSDT?

BYUSDT is available to Bybit users who have completed Identity Verification (KYC), hold a UTA and are eligible for Bybit Savings services.

Please note that Islamic Accounts and accounts with active Institutional Loans are not eligible to participate.

Due to regulatory requirements, BYUSDT may be unavailable or restricted in certain jurisdictions. Users from service-restricted countries are not eligible.

What can I do with BYUSDT?

While your BYUSDT earns you yield in a USDT Flexible Easy Earn product, you can use it as margin for eligible trading through your UTA, transfer it to your MT5 CFD Account for TradFi CFD trading, hold it in your UTA, or swap or redeem it through your Main Account or a Subaccount.

If you’d like to pay back a debt or reduce leverage in your UTA, you can use BYUSDT. You will simply need to convert it manually to USDT on a 1:1 basis. There are no additional service fees for this conversion.

If your leveraged position is liquidated, BYUSDT can be used to meet the settlement requirements. In this case, there will also be a 1:1 conversion to USDT with no additional service fees.

Where BYUSDT can be used

BYUSDT’s main utility for traders is as a margin asset. You can use your BYUSDT funds as margin in leveraged trading products, such as Perpetuals and Futures. Once swapped from USDT, BYUSDT is automatically enabled for margin trading through your UTA, with no manual setup required. Please note, however, that once auto-enabled, this functionality will remain active, without the option to disable it.

You can also hold BYUSDT in your UTA  without actively applying it to margin trades. However, BYUSDT is not supported in UTA Isolated Margin Mode, so you’ll need to use Cross Margin or Portfolio Margin to utilize it as collateral.

BYUSDT can also be transferred to your MT5 CFD Account for TradFi CFD trading. USDT and BYUSDT transferred into the account are converted to USDx at a 1:1 ratio for CFD trading, with no conversion loss. BYUSDT transferred to the MT5 CFD Account continues generating yield, with rewards distributed to your UTA, while CFD trading profits and losses are settled in USDT.

BYUSDT swaps and redemptions with USDT are supported through both your Main Account and Subaccounts. Likewise, margin trading using BYUSDT is also possible through both your Main Account and Subaccounts.

As noted earlier, BYUSDT can also be used for manual repayment of liabilities in your UTA, and to meet liquidation settlement requirements — in both cases with no additional fees applicable, and at a straightforward 1:1 conversion with USDT.

Using BYUSDT for CFDs? Explore the Bybit RWA learning path to learn about more CFDs and other Bybit RWA products like TradFi Perpetuals and xStocks.

Where BYUSDT cannot be used

Functionally, BYUSDT acts similarly to USDT within your UTA. However, it’s essential to remember that this is not a simple equivalent of the stablecoin for all purposes on the platform. There are some functions for which your BYUSDT cannot be used.

First of all, you can’t hold BYUSDT in your Funding Account or withdraw it from Bybit. However, BYUSDT can be transferred from your UTA to your MT5 CFD Account for TradFi CFD trading. As a tokenized asset designed primarily for margin operations and Easy Earn investment, BYUSDT can’t be withdrawn from the platform. Likewise, it can’t be used within the Bybit Convert service to swap it with other cryptocurrencies.

While BYUSDT represents your Flexible Easy Earn balance, it can’t be directly deposited into Bybit Earn products. Transfers of BYUSDT between your Main Account and Subaccount aren’t possible either. 

In addition, the tokenized asset cannot also be used for Institutional Loans on Bybit. In fact, if you hold an Institutional Loan on the platform, you aren’t eligible for BYUSDT. Additionally, note that if you hold BYUSDT, you do not qualify for a Bybit Institutional Loan. Furthermore, BYUSDT can’t be used as collateral to obtain Bybit Crypto Loan products.

Finally, BYUSDT can’t be used for Spot trading. It’s designed primarily as a margin asset for eligible leveraged trading products, including eligible crypto derivatives and TradFi CFDs.

How to use BYUSDT

You will be able to use BYUSDT via both the Bybit desktop platform and the mobile application. 

On desktop

On desktop, Bybit will offer BYUSDT minting and redeeming through a dedicated website for the product.

Step 1: Visit the product website and click on the Invest with Easy button.

Step 2: Indicate the amount of USDT you wish to invest in a Flexible Easy Earn plan, and click on Invest Now to place your order. You’ll receive a confirmation message detailing the rates and conditions of your investment plan.

Step 3: Revisit the product website and click on the Swap to BYUSDT button prominently displayed on the page. You’ll be able to easily mint BYUSDT by converting the USDT held in your active Flexible Easy Earn plan. Step 4: The product website will list your active BYUSDT holdings. You can redeem your BYUSDT through the same Mint/Redeem interface as above by clicking on Redeem next to your asset listing on the product website.

On mobile

Step 1: Open the Bybit mobile app, navigate to the Earn tab and click on the BYUSDT link under the Events section.

Step 2: You will be directed to the BYUSDT product page. Click on the Invest with Easy Earn button, then on Invest Now.

Benefits of BYUSDT

1. Earn while you trade

While your BYUSDT is used for margin trading, the same funds earn you interest through a USDT Flexible Easy Earn plan. Normally, while Easy Earn products allow you to use your idle funds to earn yield, the amount stays in the investment and can’t be utilized in other Bybit products and services. In contrast, BYUSDT offers a unique opportunity to put these funds to use in active trading while your Easy Earn yield accrues.

2. Instant liquidity

Your BYUSDT is immediately usable within your UTA for eligible margin trading and can also be transferred to your MT5 CFD Account for TradFi CFD trading. It’s auto-enabled for these purposes by default, and there are also no delays when you want to redeem the funds. This provides the ultimate form of instant liquidity: you can immediately use your BYUSDT when you see profitable margin trading opportunities on the platform. 

3. 1:1 backing and safety

BYUSDT is backed 1:1 by your USDT funds dedicated to Flexible Easy Earn. USDT is the world’s most actively traded crypto asset, the highest-capped stablecoin and the primary cryptocurrency that facilitates fiat/crypto on-ramping and off-ramping. It’s also been around since 2014, and is considered the oldest surviving stablecoin. USDT is so deeply entrenched in the crypto trading ecosystem — and owns such a large share of liquidity — that most analysts consider it to carry very little risk of depegging. 

Instead of being backed by a volatile non-stablecoin cryptocurrency, your BYUSDT is shielded from the risk of value loss by the time-tested stability of USDT. 

4. Growing token balance

Your USDT Flexible Easy Earn plan accumulates daily yield, which increases the balance of BYUSDT available for margin trading. Over time, as the daily yields accrue on top of the principal, you get access to more liquidity to carry out your margin trades. Higher available margins also mean higher total position sizes, which can potentially amplify profits for experienced traders skilled at leveraged trading.

5. Increased capital efficiency

BYUSDT is an excellent product for optimizing your capital efficiency. The same amount works twice for you; first, as a yield-generating asset, and second, as margin available for your trades. Seasoned trading pros always appreciate the importance of capital efficiency for maximizing trading opportunities. 

Additionally, the same funds are allocated to two opportunities with very different risk profiles. While USDT Easy Earn products are primarily known as low-risk investments with principal-protected yield, leveraged trades using margin are classified as high-risk trading methods. These significantly divergent risk profiles are helpful in diversifying your overall risk exposure.

Fees and campaign fee waiver

During the initial months after the launch of BYUSDT for retail users, Bybit will charge no swap fees when you mint and redeem BYUSDT via USDT. This is a special campaign period, designed to help you adopt the product and appreciate its full potential. After this period, a service fee may apply for BYUSDT mints and redemptions, including for yield conversions.

As noted earlier, any use of BYUSDT for manual repayment or liquidation settlement will not incur any additional fees, and the funds will be converted to USDT on a 1:1 basis.

While BYUSDT serves as margin, applicable interest, funding fees, CFD swap fees and trading losses remain payable or settled in USDT. Users must account for these costs separately.

Why you can’t swap or redeem

When attempting to use BYUSDT mints and redemptions, you may encounter situations in which a transaction fails, or you’re unable to access the service interface. These instances typically occur when you fail to meet specific criteria to execute a swap from USDT or a redemption to USDT at the time of the transaction. Below are some common reasons for swap or redemption failures that you might encounter.

Swap failures

Any user with an active Institutional (INS) Loan is also not eligible for BYUSDT. Individual retail and VIP users are eligible to acquire BYUSDT, but they must have completed the Identity Verification procedure in order to start using it.

Regional restrictions may also apply. To ensure your country is supported, please check the latest terms and conditions on BYUSDT’s dedicated website.

If you’re an individual user with a verified identity, and reside in a supported country, you might still encounter swap failures due to the following reasons:

• You’ve hit your personal cap of 1 million USDT for this product

• A platform-wide cap for BYUSDT has been reached; in this case, you can wait for some time and try again

• Your Flexible Easy Earn USDT balance is less than the minimum acceptable swap amount

In rare cases, it’s also possible that BYUSDT swaps might be temporarily paused by the platform during extreme market conditions. 

Redeem failures

You might encounter redemption issues if your BYUSDT is fully tied up as margin, or if your margin balance is below the Initial Margin (IM) requirement. As a solution, you can use manual repayment with BYUSDT to free up some funds.

Closing thoughts

Designed for Bybit retail users who need greater capital efficiency, BYUSDT offers a way to use the same funds for two complementary purposes: earning yield through USDT Flexible Easy Earn while serving as margin for eligible leveraged trading products. This includes eligible crypto derivatives through the UTA, as well as TradFi CFDs through the MT5 CFD Account. As your Easy Earn yield accumulates, the same BYUSDT balance can continue supporting eligible trading activity.

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