The change will allow traders greater capital efficiency, earning yield on base assets while engaged in trading activities using Bybit’s Unified Trading Account.

Ethena has stormed the crypto scene this year, becoming one of the fastest growing DeFi protocol with its tokenized yield-generating investment offering that attracted over $2 billion in deposits, while also drawing plenty of scrutiny of risks from market observers still marred by the crypto implosions of the bear market.

“Our decision to integrate Ethena Labs’ synthetic dollar, USDe, as a collateral asset on Bybit is a game-changer,” said Hao Yang, head of financial products at Bybit. “What we're seeing is Ethena setting up USDe to become a competitor to USDT, which became the giant it is by dominating the trading pair market on crypto exchanges. This creates a dynamic dualism between TradFi-backed stablecoins such as USDT and crypto-native solutions like USDe.”

“By enabling USDe for use in Bybit Futures and Earn, we are tapping into the demand for more versatile financial tools that empower our 28 million users to manage and grow their portfolios in innovative ways,” Yang continued. “Now, by combining the different risk profiles of USDT and USDe, our users can enjoy even greater flexibility in how they manage their assets.”

Bybit users can access USDe via Bybit’s Spot platform and use the new product across derivatives using their Unified Trading Account.