Cryptocurrency exchange Bybit has announced a strategic shift to Tether (USDT) for its futures and options contracts, discontinuing new USDC contracts from February 26. This move aims to boost platform liquidity and better serve its growing user base.
Strategic Shift in Stablecoin Focus
Bybit’s decision comes at an interesting time. The platform will migrate SOLUSC and ETHUSDC futures to USDT. This shift aligns with USDT’s dominant position in the stablecoin market, commanding a $145.2B supply compared to USDC’s $54.9B.
The exchange has shown strong performance, recording $22.2B in daily trading volume during the 2024 bull run. Bitcoin and Ethereum remain the most active trading pairs on the platform.
European Expansion Plans
Bybit has made significant progress in its European regulatory journey. The exchange recently achieved removal from the French AMF blacklist after two years of regulatory engagement. CEO Ben Zhou confirms their pursuit of a MiCA license.
This regulatory progress marks a crucial step for Bybit’s European expansion. Despite facing restrictions in several major markets, the exchange maintains its growth trajectory.
Market Implications
The shift to USDT could strengthen Bybit’s position in markets where USDT dominates trading pairs. This includes significant trading volumes from the Russian Federation.
Bybit’s careful scheduling of USDC and USDT contract expiries shows their commitment to maintaining market stability. This approach should prevent liquidity fragmentation during the transition.
Future Outlook
The crypto exchange landscape continues to evolve with regulatory developments. Bybit’s strategic moves position it well for the anticipated surge in crypto adoption.
As pro-crypto regulations emerge globally, exchanges focusing on compliance and liquidity optimization will likely gain competitive advantages.
Tags: #Bybit #USDT #CryptoExchange #Regulation #Stablecoins
Source: NewsBTC