Bybit to phase out USDC contracts in favor of Tether USDT
Bybit to phase out USDC contracts
Bybit, one of the world’s largest cryptocurrency exchanges, has announced a full transition of its options and linear futures contracts to Tether (USDT), phasing out new USDC-settled contracts starting February 26.
The move is aimed at boosting liquidity and ensuring seamless trading, according to statements from both Bybit and Tether executives, according to the Cryptopolitan.
A Strategic Shift Amid Changing Stablecoin Trends
While USDC usage has expanded across both centralized and decentralized markets, Bybit is diverging from industry trends by deepening its reliance on USDT. This decision comes as USDT remains the most widely used stablecoin, despite facing divestment from European exchanges. Tether CEO Paolo Ardoino stated that the shift would provide Bybit with "unprecedented liquidity" by consolidating settlements under USDT.
Existing USDC contracts will remain tradeable until expiration, with Bybit ensuring no overlapping settlement dates between USDT and USDC products to prevent liquidity fragmentation. Affected contracts include SOLUSDC and ETHUSDC futures, which will transition to USDT-based equivalents in the coming weeks. Trading rules, fees, and margin structures will remain largely unchanged.
Navigating Regulatory and Market Pressures
Bybit’s decision is also influenced by geopolitical and regulatory considerations. The exchange, which sees significant traffic from Russia, may be prioritizing USDT due to concerns over potential sanctions or restrictions on USDC. While USDT continues to dominate the market, boasting a $145.2 billion supply, USDC has seen increasing adoption, particularly on networks like Solana and Base.
Despite its pivot to USDT, Bybit is actively working to regain legal footing in Europe. The exchange recently secured removal from France’s financial authority blacklist and is pursuing a MiCA license to expand in the Euro area.
Recently, Bybit launched a new promotion offering up to 555% APR on USDT deposits. Eligible users can also receive a 5 USDT airdrop.
