Bybit, a prominent cryptocurrency exchange based on trading volume, has significantly enhanced the integration of cryptocurrency with traditional trading. Tether (USDT) enables direct trading of global stocks. Circle’s USDT is a dollar-pegged stablecoin.
Announced on Monday, May 19, 2025, this move allows Bybit’s 70 million users across 160 countries to trade 78 top global equities.
These equities include, but are not limited to, giants like Apple, Tesla, Nvidia, Meta Platforms, and Amazon. With USDT integration, traders can dabble with stocks without needing to convert to fiat currency.
Bybit is redefining the boundaries of financial markets by merging traditional finance (TradFi) and DeFi under one platform.
In this article, Crypto Guide GH explores the long-term implications of this innovation for both the cryptocurrency and stock markets. The editorial review will consider the potential implications of Bybit’s USDT integration.
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Bybit’s USDT integration
Bybit’s initiative to allow stock trading with USDT is a significant step toward unifying crypto and traditional asset classes.
Traditionally, trading stocks required fiat onboarding through banks. This often involved cumbersome processes, high fees, and regional restrictions.
By leveraging USDT, a stablecoin pegged 1:1 to the US dollar, Bybit eliminates the need for fiat conversions. This enables seamless transactions within the crypto ecosystem.
This fluidity is particularly impactful for crypto-native traders who hold significant portions of their portfolios in digital assets.
By sidestepping fiat bridges, Bybit reduces friction and lowers transaction costs. This enhances accessibility for users in regions with limited access to traditional banking systems.
In the long term, such an approach could democratise access to global stock markets, with traders in several developing economies benefiting.
Emerging markets in the Middle East, Africa, Central America, Asia, and South America where access to US dollars or brokerage accounts is restricted stand to benefit significantly.
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USDT is a large cap digital asset
USDT’s global adoption is buoyed by its $150 billion market capitalisation. As the largest stablecoin by market cap, it sees billions of dollars in daily trading volume. This makes it a trusted medium for cross-border transactions.
For instance, traders in regions like Africa, Southeast Asia, or Latin America can now invest in blue-chip US stocks without navigating complex fiat systems.
This could lead to increased participation in global equities. The resultant effect could potentially boost trading volumes and liquidity in stock markets over time.
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Bybit USDT Stock Trading: Key Features
Below are the key features of Bybit’s USDT stock trading:
Exchange: Bybit
Launch Date: May 19, 2025
Assets: 78 global stocks (e.g., Apple, Tesla, Nvidia, Meta, Amazon).
Trading Currency: Tether (USDT), pegged 1:1 to USD.
User Reach: 70 million users in 160 countries.
Fee Structure: Non-VIP: 0.10% maker/taker (spot trading) and Pro 3: 0% maker, 0.02% taker (spot trading).
Additional Assets: Part of Bybit’s Gold & Forex suite (includes gold, oil, indices, and forex).
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Benefits of Bybit USDT stock trading
Several benefits have emerged from this integration.
No Fiat Needed: Trade stocks directly with USDT.
Global Access: Ideal for regions with limited banking infrastructure.
Low Costs: Minimal transaction and conversion fees.
Unified Trading: Manage crypto, stocks, and commodities in one account.
Risks associated with Bybit USDT stock trading
Here are a few risks associated with the use of the stablecoin in stock trading.
Regulatory Challenges: Evolving stablecoin regulations.
Market Risks: Potential volatility from crypto market fluctuations.
USDT Transparency: Ongoing concerns about Tether’s reserve backing.
Impact on the Cryptocurrency Market
Bybit’s move strengthens the role of stablecoins as a cornerstone of the crypto ecosystem.
USDT is already the most traded stablecoin, with a daily transaction volume surpassing Visa and Mastercard combined. USDT trading volume for May 19 was approximately $90 billion, CoinMarketCap data showed.
This increased use case could drive demand for USDT. In the long term, this could potentially improve demand for USDT, despite past controversies regarding reserve transparency.
As more exchanges follow Bybit’s lead, stablecoins could evolve into a universal bridge between crypto and TradFi. This could enhance their legitimacy and adoption.
Moreover, this development could accelerate the mainstream acceptance of cryptocurrencies.
By integrating stock trading, Bybit positions crypto exchanges as all-asset platforms. This challenges traditional brokerages like Fidelity or Charles Schwab.
This convergence may attract institutional investors, who have historically been cautious about crypto due to volatility and regulatory risks.
Over time, increased participation from institutional investors could reduce volatility in the crypto market, as larger capital pools stabilise price fluctuations.
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Volatility cannot be ignored
However, it also introduces new risks. This is because the volatile nature of the crypto market could spill over into stock trading. As many analysts have predicted, these factors may create interconnected volatility.
The long-term growth of stablecoins like USDT could also prompt regulatory clarity. Governments worldwide are developing frameworks for stablecoins. The US is currently advancing legislation to regulate dollar-backed tokens.
Clear regulations could legalise stablecoins. This will foster trust and encourage broader adoption. Conversely, stringent rules or bans in key markets could hinder Bybit’s model.
Concerns over illicit activities or reserve inadequacy have led to restrictions on USDT, which serves as a prime example of risk. The $41 million fine imposed on Tether by the US Commodity Futures Trading Commission (CFTC) in 2021 underscores these risks.
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Impact on the Stock Market
For the stock market, Bybit’s innovation introduces new dynamics. By enabling USDT-based trading, Bybit lowers barriers to entry. This potentially increases retail investor participation.
This change could lead to higher trading volumes for popular equities, particularly for tech giants like Nvidia and Tesla. Crypto investors already favour the stocks of these companies due to their innovative narratives.
Increased liquidity could reduce bid-ask spreads, benefiting all market participants. However, it may also amplify volatility. This is because crypto traders are accustomed to high-leverage strategies (like Bybit’s 100x leverage on derivatives). Should they apply similar approaches to stocks, this could lead to rapid price swings.
The integration of cryptography and stock markets could also reshape investor behaviour. Crypto traders, known for their risk tolerance and short-term trading strategies, may bring a speculative mindset to equities.
This shift could lead to increased short-term trading activity. Everyone who has dabbled with traditional markets knows that this is potentially at odds with the long-term investment strategies preferred by traditional stock investors.
Over time, such trends could influence stock valuations, particularly for high-growth sectors like technology and artificial intelligence (AI). Due to the influence of ChatGPT, Grok AI, and Meta AI, many crypto investors are likely to concentrate on crypto stocks.
Additionally, Bybit’s model could challenge traditional brokerages by offering a more seamless and cost-effective trading experience. If successful, it may pressure legacy platforms to integrate crypto or stablecoin options. In the long term, it could accelerate the convergence of TradFi and DeFi.
However, stock markets may face new risks, such as exposure to crypto market crashes. This could disrupt trading on Bybit’s platform. In hindsight, the crash of Terra LUNA could impact stock prices and investor confidence.
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Regulatory and ethical considerations
The long-term success of Bybit’s initiative hinges on navigating regulatory challenges. Stablecoins face intense scrutiny due to concerns over transparency, money laundering, and systemic risks to the financial system.
Tether’s opaque reserve practices have drawn criticism, and any failure to maintain its 1:1 peg could undermine confidence in Bybit’s stock trading platform.
Regulatory crackdowns, particularly in major markets like the US or EU, could limit the scalability of this model. For instance, the EU’s Markets in Crypto-Assets (MiCA) framework imposes strict requirements on stablecoin issuers. This could affect USDT’s operations.
Ethically, Bybit’s move raises questions about financial inclusion versus risk exposure. While it empowers underserved populations to access global markets, it also exposes them to the volatility and regulatory uncertainties of the crypto ecosystem.
Investors must be educated about the risks of trading stocks with USDT, including potential losses from leverage or market disruptions. Bybit’s commitment to transparency and user education will be critical to maintaining trust.
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Long-term market evolution of Bybit’s move
Over the next decade, Bybit’s innovation could catalyse a broader transformation of financial markets. As other exchanges emulate this model, we may see a proliferation of hybrid platforms offering crypto, stocks, commodities, and forex trading.
This trend could erode the dominance of traditional financial institutions. In the not-too-distant future, this could force them to adapt or lose market share.
The rise of stablecoin-based trading may also spur innovation in blockchain technology, with new protocols designed to handle cross-asset trading securely and efficiently.
For the crypto market, this could lead to greater stability and maturity as stablecoins become integral to global finance. For the stock market, it could mean increased liquidity and participation but also heightened volatility and regulatory oversight.
The convergence of these markets may ultimately create a more integrated, accessible, and dynamic financial ecosystem, but it will require careful navigation of risks and regulations.
Conclusion: Is Bybit USDT stock trading integration a great move?
Bybit’s pioneering move to enable stock trading with USDT marks a pivotal moment in the fusion of crypto and traditional finance.
By lowering barriers to entry, enhancing accessibility, and unifying asset classes, Bybit is setting a precedent that could reshape both markets.
While the long-term benefits include increased liquidity, financial inclusion, and innovation, challenges such as regulatory scrutiny, market volatility, and transparency concerns must be addressed.
As the financial world evolves, Bybit’s initiative may herald a new era of seamless, decentralised trading, blurring the lines between TradFi and DeFi for generations to come.
3 Comments
It is great to finally see stablecoins gaining institutional adoption in the form of an alliance with the traditional markets. Only time will tell if other major players within the crypto economy will follow Bybit and take stablecoins to a whole new level.
Super insightful article.
Very good partnership.