Bybit, a cryptocurrency exchange, announced on Monday that it will offer futures contracts in the stablecoin USD Coin (USDC) rather than bitcoin.
According to a release, this is the first time Bybit will provide futures contracts settled in USDC rather than bitcoin, in an effort to provide consumers with stable rates throughout the term of the contract. The total amount of bitcoin futures contracts held by its platform users — bitcoin futures open interest — is among the highest of any exchange.
Ben Zhou, CEO and co-founder of Bybit, stated in the statement that the company was satisfied with the way its option trading product was launched. “Our derivatives platform has the world’s finest liquidity and tightest spread,” he continued, “so traders are guaranteed the best quote and best execution in the market even during extreme volatility.”
According to Bybit’s statement, unlike bitcoin-settled contracts, using USDC provides stability for the duration of each contract. The decision comes at a time when authorities and investors are once again scrutinizing stablecoins, with several high-profile stables de-pegging in the last month.
The announcement comes just five days after Bybit was fined by the Ontario Securities Commission (OSC), however as part of the settlement, the exchange pledged to working with the regulator.
Bybit, which was founded in Singapore in 2018, has risen to be the second-largest crypto exchange in futures trading over the last four years.