In a move that has effectively integrated the new USDe (United States Dolar Ecoin) stablecoin onto its platform, Bybit, the world’s third largest exchange by volume, has announced a cooperation between its institutional team and the stablecoin’s issuer, Ethena Labs. This partnership will see Bybit manage a substantial portion of the initial USDe hedging flow, making it an integral part of Ethena’s growth.
The inclusion by Bybit of USDe expands its stablecoin offerings and will likely create a new market of users keen on leveraging USDe’s censorship-resistance, stability and scalability. Users can access a wide array of these stablecoins and more through the exchange’s Unified Trading Account.
Ethena Labs’ USDe is seen as an innovative approach to decentralised money that does not rely on centralised banking systems. It offers a robust, scalable, and censorship-proof solution. It maintains its dollar peg using collateral provided by users, thus cushioning it from exposure by shorting Ethereum using perpetual swaps. To guarantee full collateral backing without compromising ETH yield, USDe uses delta-hedging on staked Ether (ETH) collateral on Bybit.
As the world pushes to have crypto-native substitute to digital money this collaboration between Ethena and Bybit is a major step in that direction. Positioned as a game-changer in the industry, Ethena follows a traditional market model by keeping custody and execution separate and by committing to employing off-exchange custodians to access centralised liquidity.
The inclusion of USDe brings a new dimension to Bybit’s stablecoin offerings and also gives users the chance to diversify their crypto-native product holdings. Unlike the centralised stablecoins that are presently ruling exchanges, this provides an uncorrelated risk profile.
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