Cryptocurrency exchange Bybit distributes $300,000 USD in airdrops in conjunction with the launch of its new stablecoin, USD1, on its spot trading platform.
Bybit, a leading cryptocurrency exchange, has announced the launch of USD1, a fully dollar-backed stablecoin, on its Spot trading platform. The token was made available for trading on July 9, 2025, at 12:00 PM UTC, with the trading pairs USD1/USDT and MNT/USD1.
Bybit's move into the stablecoins space follows the success of Tether's USDT and Circle's USDC. The exchange aims to establish USD1 as a credible alternative on major trading platforms.
Key Features of USD1
USD1 offers several features that set it apart:
- Full Collateralization: Each USD1 token is fully collateralized 1:1 with fiat reserves held as cash and U.S. Treasuries, adding stability and reducing the risk of under-collateralization.
- Monthly Reserve Audits: Third-party audits and monthly attestations provide transparency and build trust by verifying the backing of every token.
- BitGo Custody: BitGo, a leader in institutional crypto custody, manages the reserves, providing regulated safekeeping.
- Multi-Chain Support: USD1 supports cross-chain bridging primarily on Ethereum, Binance Smart Chain, and TRON, facilitating use across decentralized finance (DeFi), centralized exchanges, and payment rails.
- Fast & Low-Cost Settlement: Enables near-instant transactions 24/7 with low fees, unaffected by traditional banking hours, ideal for cross-border payments and merchant use.
- No Fees for Minting or Redemption: USD1 charges no fees for creating or cashing out tokens, lowering barriers to entry and reducing costs compared to some competitors.
Benefits of USD1
USD1 offers several benefits to users:
- Stability and Trust: Fully fiat-backed and audited monthly, offering strong safety compared to algorithmic or partially backed stablecoins.
- Cross-Border Payments: Facilitates near-instant global transfers without high fees, suitable for individuals and businesses for remittances and B2B settlements.
- DeFi Compatibility: Usable as collateral or liquidity in lending protocols, enabling predictable yields and volatility reduction.
- Trading and Hedging: Acts as a reliable stable asset for crypto trading, hedging, and arbitrage across on-chain and centralized exchanges.
- Institutional Grade: BitGo custody and regulatory compliance appeal to institutional investors seeking secure stablecoins.
- Political and Institutional Backing: Involvement of the Trump family and a Binance-related deal enhance credibility and aim for broader adoption.
Competitive Position Versus USDT and USDC
USD1 aims to compete with major stablecoins like Tether (USDT) and USD Coin (USDC) by offering:
- Collateral Type: 100% Fiat-backed (Cash + U.S. Treasuries) vs Fiat-backed but controversial audits and Fiat-backed, regularly audited.
- Custodian: BitGo (regulated, institutional) vs Tether Limited (controversial) and Circle & Coinbase (regulated).
- Multi-Chain Operability: Ethereum, BSC, TRON vs Ethereum, Tron, others and Ethereum primarily, others too.
- Transaction Speed & Cost: Near-instant, low fees vs Fast, some congestion costs and Fast, low fees.
- Transparency & Audits: Monthly third-party attestations vs Regular but criticized audits and Monthly fully transparent audits.
- Fee Structure: No fees for minting/redemption vs Charges fees sometimes and Generally low/no fees.
- Institutional & Political Backing: Strong (politically charged WLFI) vs Mixed reputation and Widely trusted by institutional users.
USD1's key differentiation is its strong full fiat collateralization with regulated custody by BitGo, combined with no fees for minting/redemptions, multi-chain interoperability, and a focus on institutional and political backing to drive adoption.
Promotional Events
To celebrate the launch, Bybit has introduced two promotional events, offering a combined 300,000 USD1 prize pool. These campaigns run until July 23, 2025, aiming to drive liquidity and onboarding while establishing USD1 as a credible stablecoin alternative on major trading platforms.
However, users from restricted regions, including the European Economic Area (EEA), cannot participate in the promotional events.
[1] World Liberty Financial (WLFI) official website: https://www.worldlibertyfinancial.com/ [2] Binance-MGX partnership announcement: https://www.binance.com/en/blog/news/2025-02-01-binance-announces-2-billion-partnership-with-mgx-to-accelerate-blockchain-adoption [3] BitGo official website: https://www.bitgo.com/
- Bybit, a prominent cryptocurrency exchange, has introduced USD1, a fully dollar-backed stablecoin on its Spot trading platform, aiming to establish it as a credible alternative to USDT and USDC.
- USD1 stands out with full collateralization, monthly reserve audits, institutional-grade custody, multi-chain support, fast settlement, and no fees for minting or redemption.
- With USD1, users can benefit from stability, cross-border payments, DeFi compatibility, trading, and hedging, institutional-grade custody, and political and institutional backing.
- Compared to its competitors USDT and USDC, USD1 offers 100% fiat-backed collateral, regulated custody by BitGo, multi-chain operability, near-instant transaction speed, transparent audits, and no fees for minting/redemption.
- To mark the launch, Bybit is hosting two promotional events with a combined prize pool of 300,000 USD1, running until July 23, 2025. These campaigns aim to boost liquidity and onboarding while establishing USD1 as a viable alternative on major trading platforms.
- However, participants from restricted regions, such as the European Economic Area (EEA), are not eligible for the promotional events.
- The ongoing success and growth of the crypto industry, backed by technology, finance, business, and banking-and-insurance sectors, are expected to play a significant role in the widespread adoption of USD1 and other stablecoins in the forthcoming years.
