Bybit, the world’s third-largest cryptocurrency exchange, has entered into a strategic partnership with Ethena Labs to launch Ethena’s USDe stablecoin on the Bybit platform. As a decentralized currency solution, USDe operates independently of traditional banking systems. Delta Hedging utilizes staked Ether (ETH) for comprehensive collateral support.
The collaboration marks a pivotal move in digital currency innovation, with Bybit set to handle significant hedging flows against USDe. This strengthens Ethena’s position in the strategic framework and diversifies stablecoin options for Bybit users, providing an alternative to centralized stablecoins.
Ethena’s methodology includes segregated storage and execution aligned with existing market practices. Hiring qualified custodians for asset safety reflects Bybit’s efforts to meet institutional requirements. This initiative positions Ethena as a transformational player in the industry.
Ben Zhou, Bybit’s co-founder and CEO, emphasizes the company’s commitment to overcoming cryptocurrency challenges. He emphasized the creation of a decentralized stablecoin and said:
“Our collaboration with Ethena Labs highlights our determination to solve important cryptocurrency problems, especially the creation of decentralized stablecoins.”
The integration of USDe expands Bybit’s stablecoin offering, giving users a variety of solutions accessible from integrated trading accounts.
Bybit Institutional, part of the exchange, has upgraded its portfolio margin mode. This improvement introduces spot trading functionality, allowing traders to integrate spot positions into their hedging strategies, improving risk management in volatile cryptocurrency markets.
Integrating spot trading into portfolio margin mode offers several benefits, including reduced margin requirements and seamless integration of spot positions into integrated portfolio management.
Traders can enhance their risk management by choosing spot hedging against spot prices. However, this feature requires active participation, with the system checking the trader’s maintenance margin rate before allowing the conversion.
Bybit’s collaboration with Copper’s ClearLoop network has significantly addressed the needs of institutional investors and strengthened governance, transparency and accountability principles. This integration enables rapid off-chain payments and reduces counterparty risk during market disruptions.
This partnership provides access to ClearLoop’s trust documents, ensuring improved security and trust for Bybit customers. The integration presents a transparent UK law trust structure and secures assets under Copper’s multi-party accounting management.
This strategic collaboration between Bybit, Ethena Labs, and Copper’s ClearLoop network highlights the continued evolution of the cryptocurrency landscape toward improved stability, security, and diverse products. These partnerships play an important role in strengthening the industry base and increasing trust among users and investors alike.