BYUSDT: Elevate your trading strategy with VIP-exclusive dual-yield power
Bybit is launching a new product, BYUSDT, exclusively designed for VIP users, on Dec 12, 2025. The BYUSDT token 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 your UTA trades.
Designed for individual VIP users who have completed Identity Verification (KYC), 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 optimizes capital efficiency and utilization, allowing you to earn yield from Easy Earn while simultaneously using the same funds in margin trading.
The unique BYUSDT product is available to individual Bybit VIP 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. 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.
When you hold BYUSDT, your investment earns the same base APR as the applicable USDT Flexible Easy Earn plan. Note that the standard USDT Easy Earn products may have a base APR and a promotional platform reward APR, and the additional platform reward APR doesn’t apply to the BYUSDT product.
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.
Bybit BYUSDT is slated for launch on Dec 12, 2025.
Who is eligible to earn from BYUSDT?
BYUSDT is available only to Bybit’s individual VIP users and holders of the VIP Trial Card who have completed Identity Verification. To qualify for Bybit’s VIP program at the first level (VIP 1), a trader needs to satisfy one of the three requirements:
Have an asset balance of at least 100,000 USD
Achieve a 30-day average net borrowing of at least 50,000 USD
Achieve a 30-day minimum trading volume of 1 million USD for Spot trading, or 10 million USD for Derivatives trading, or 5 million USD for Options trading, or 500,000 USD for Advanced Earn products
More significant trading volumes and balances qualify you for progressively higher VIP levels.
Based on their activity, some non-VIP users who may potentially qualify for VIP status will be issued VIP Trial Cards by Bybit. These users are also eligible to benefit from BYUSDT while their cards are still valid. Please note that a personal cap of 1 million USDT applies for BYUSDT. In addition, Institutional users, Pro users and any user with an active Institutional Loan are not eligible for the BYUSDT product.
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 trading through your UTA, hold it in your UTA, swap it 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 VIP traders is as a margin asset. Thus, you can use your BYUSDT funds as margin in leveraged trading products, such as Perpetuals and Futures. Once swapped from USDT, BYUSDT’s use for margin trading via your UTA is auto-enabled, with no additional action required from you to manually turn on such functionality. Please note, however, that once auto-enabled, this functionality will remain active, without the option to disable it.
Naturally, you can also simply hold BYUSDT in your UTA without actively applying it to margin trades. Your UTA supports a diverse range of assets, including tokenized assets like BYUSDT. Please note that BYUSDT is not supported in UTA Isolated Margin Mode, so you will need to switch to Cross Margin mode or Portfolio Margin mode to in order to utilize your BYUSDT.
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.
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, nor can you transfer it out of your UTA. 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 as an asset for leveraged trading opportunities through Bybit’s Derivatives products.
How to use BYUSDT
VIP users 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 Start with USDT Flexible Holdings 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 Mint 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 BYUSDT product screen and tap on Get USDT Flexible Position.
Step 2: Use the Mint/Redeem screen to mint BYUSDT with USDT and redeem it back.
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 margin 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, Bybit will charge no swap fees when you mint and redeem BYUSDT via USDT. This is a special campaign period, designed to help the platform’s VIP clients adopt the product and appreciate its full potential. After this period, a swap fee of 0.01% 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, any interest, funding fees or losses from leveraged positions, remain payable 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
If you aren’t a VIP-level customer or holder of a VIP trial card, you won’t be able to use your active Flexible Easy Earn USDT to mint BYUSDT. If you qualify for a VIP grade on Bybit in the future, you can always take advantage of the product at that stage.
If you’re an Institutional account holder, you also won’t be able to use BYUSDT. Any user with an active Institutional (INS) Loan is also not eligible for the product.
Individual VIP users are eligible for 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 VIP 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.
BYUSDT VIP HODL and Trade Arena
Bybit has devised an exclusive two-part VIP event, BYUSDT VIP HODL and Trade Arena, dedicated to BYUSDT for its VIP users, to be held from Dec 15, 2025, 10AM UTC–Jan 14, 2026, 10AM UTC. The HODL Arena encourages BYUSDT holding, while the Trade Arena rewards active trading using the asset. You can qualify for both arenas by registering for the event, swapping at least 10,000 USDT from your Easy Earn balance into BYUSDT and maintaining a net holding of at least 10,000 BYUSDT in your UTA throughout the event. Eligible participants will share a 700,000 USDT prize pool.
HODL Arena
The HODL Arena features a prize pool of 100,000 USDT. Simply hold at least 10,000 BYUSDT in your UTA during the campaign period. The more you hold, the more you’ll earn. Daily snapshots of your UTA net holdings will be taken during the period. At the end of the campaign, the total prize pool of 100,000 USDT will be distributed proportionally based on each participant’s share of holdings. The rewards will be allocated to eligible users in the form of an airdrop within seven days after the campaign’s end date.
Trade Arena
The Trade Arena is designed for VIP users who would like to put their newly acquired BYUSDT to active use on the platform. As a prerequisite for participation, VIP users must first register for the campaign, mint at least 10,000 BYUSDT and maintain a net position of at least 10,000 BYUSDT during the campaign period.
The BYUSDT VIP Trading Campaign has a two-part structure.
Part 1 — Daily trading tasks
During the first part, participants will need to complete daily Futures trading tasks and reach various daily Futures trading volume targets to earn rewards in the form of a Futures Bonus. The targets are as follows:
100,000 USDT → 5 USDT Bonus
500,000 USDT → 10 USDT Bonus
5,000,000 USDT → 20 USDT Bonus
10,000,000 USDT → 50 USDT Bonus
These rewards are distributed in real time on a first-come, first-served basis as you reach the target trading volume thresholds. Your stats are reset daily, allowing for repeated participation and reward earning. The total prize pool dedicated to Part 1 is 200,000 USDT.
Part 2 — Trading Leaderboard
To be eligible for the second part of the campaign, you’ll need to accumulate a cumulative Futures trading volume of at least 1,000,000 USDT. Only positions opened during the qualification period will count toward the volume requirement.
For Part 2, the total prize pool is 400,000 USDT, to be distributed to the top 500 traders. The top trader will earn up to 84,000 USDT as a reward, and the total prize pool will be unlocked on a tiered basis based on trading volume. Upon unlocking, the prize pool will be distributed to eligible participants based on their ranking on the Trading Leaderboard.
Closing thoughts
Designed for Bybit VIP users who need maximum capital efficiency, BYUSDT is Bybit’s first such product. It offers VIP users a unique opportunity to utilize the same funds for two complementary purposes: low-risk Easy Earn savings and higher-risk margin trading. As your Easy Earn yields accumulate daily, you can use progressively higher margins to place larger leveraged trades — a double-win strategy made possible by BYUSDT’s unique mechanism.
And with two generous BYUSDT campaigns scheduled around the time of the asset’s launch, Bybit’s VIP users have the exclusive opportunity to earn attractive rewards while being among the first to benefit from this groundbreaking product.
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