Unlocking Stablecoin Potential: Bybit's MT5 Merges Crypto with Traditional Assets

The crypto landscape has changed dramatically in recent years, as have the broader market structure and dynamics. TradFi and institutional liquidity have been playing an increasingly important role in the crypto space. At the same time, crypto trading has become more macro and sophisticated, and the demand for building crypto plus traditional asset trading strategies has been growing among crypto native traders. Although executing these strategies efficiently may not be as easy as many thought, things are about to change.

Bridging Two Worlds: Crypto and Traditional Assets

Crypto trading and investment have never been as mainstream as they are now. Just two years ago, it would have been hard to imagine that institutional investors would have any interest in crypto at all. Now, despite the recent market volatility, crypto is one of the most discussed topics among traditional investors.

A report from EY shows that 94% of institutional investors surveyed believe in the long-term value of blockchain technology and digital assets, with 55% planning to increase their allocations by the end of 2025. Meanwhile, recent research from Grayscale indicates that maturing market and custody infrastructure are the primary reasons institutions embrace crypto investment, signaling growing confidence in diversifying into crypto alongside traditional assets.

These structural changes in the crypto market have also increased the correlation between crypto and traditional assets. Hence, crypto traders' demand for constructing cross-asset trading strategies is also growing, especially in a market where macro factors have become increasingly influential and uncertainties are in play.

Currently, the capital infrastructure works almost like a one-way street. It's easy for liquidity on the traditional side to gain exposure to crypto, but it remains difficult and exhausting for crypto liquidity to gain traditional asset exposure in a crypto-native form. The call for an interconnected ecosystem that reflects the true value of the future of finance has never been greater.

Fostering Financial Inclusivity

As a web3 advocate, we’ve witnessed blockchain’s transformation of the financial industry and the way people make trades. However, we’re still far from achieving universal financial inclusivity, with frictionless and cost-efficient cross-asset trading. The crypto industry has been pushing forward to achieve that goal, one step at a time.

Bybit's recent announcement that it’s launching the MetaTrader 5 trading platform could be a tipping point. The platform allows crypto natives to use USDT to trade traditional assets, such as commodities, forex and major indices, in the format of CFDs. This innovation not only opens doors for native crypto traders to build a much more diversified portfolio and deploy sophisticated cross-asset trading strategies, but also significantly contributes to fostering financial inclusivity. Most importantly, it enables users to do all this in a crypto-native way.

Building on the success of MT4, MT5 introduces improved features and an enhanced trading experience, based on traders' feedback, such as additional trading pairs, lower stop-out levels and higher leverage. These improvements are designed to provide traders with a more convenient and efficient experience. Learn more about the major updates of MT5, as well as its key features.

Empowering Stablecoins With New Utility

Looking at the bigger picture, MT5 could also mean expanding the utility of USDT and, potentially, other stablecoins, further propelling the mass adoption of crypto. MT5 provides stablecoin-based settlement, not just for crypto pairs but also for traditional assets. 

This means that traders can use stablecoins to trade a wide range of assets, providing a level of flexibility and convenience that was previously unavailable. This could be the first time that a major CEX is able to provide such frictionless cross-asset trading using stablecoins, making it not just a one-way street but a trading superhighway.

Conclusion

Mass adoption has been one of the holy grails in crypto. Web3 startups, from new blockchains to DApps, have been pushing the mass adoption of crypto forward in various ways. As the Crypto Ark to bridge cryptocurrency and the real world, we’re committed to building infrastructure that connects the two. 

Bybit is proud to introduce MetaTrader 5, a top-tier trading platform with the transformative potential to integrate crypto with traditional assets, and to use cryptocurrency to widen the democratization of access to various asset classes. Our platform has the potential to revolutionize the industry, making cross-asset trading more accessible and efficient than ever before. As we continue our commitment to empowering users with innovations and top-of-the-class products, we believe that MT5 is a significant step toward the mass adoption of crypto and the realization of a more inclusive and interconnected financial system. #TheCryptoArk #LearnWithBybit