Circle and Bybit, the operators behind the world’s second-largest stablecoin and the second-largest crypto exchange, are entering a new partnership that may influence how digital assets move across global markets.

The exchange, which ranks second worldwide by trading volume, said it will widen USDC liquidity in both spot and derivatives markets. It also plans to use the stablecoin more broadly in savings products, payments, and card rewards. And to make deposits and withdrawals smoother, Bybit will integrate Circle’s fiat on- and off-ramp tools.

Why Is Bybit Expanding Beyond Tether for Its Stablecoin Activity?

So far, Bybit has mostly relied on Tether for stablecoin activity, similar to many other exchanges.

For Circle, the deal offers a chance to reach more users outside its long-standing dependence on Coinbase. Circle gains another major exchange where USDC can operate at scale. 

The move also comes as some analysts warn that Circle’s stock could feel pressure if USDC’s growth slows or its market share stalls.

Closing the gap between USDC and Tether may rely on Circle securing more partners overseas, especially those with strong trading communities. The company has been moving in that direction. 

Almost a year ago, Binance, the world’s largest crypto exchange, reached an agreement with Circle to extend USDC’s reach across trading pairs, savings products, and payment tools on its platform.

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