Circle and Bybit enter USDC market expansion partnership

Circle and Bybit have entered into a new partnership aimed at expanding USDC availability and boosting liquidity for the dollar-backed stablecoin across multiple markets.

The announcement arrives as USDC’s market capitalization approaches $80 billion, marking one of its strongest periods of growth.

USDC integration expands across Bybit’s trading and payment infrastructure

According to Bybit, the partnership will expand the role of USDC on its platform, building on previous integrations that include spot and perpetual pairs, savings products, institutional settlement tools, and conversion services.

Under the new deal, the exchange is scheduled to increase its liquidity provisioning, expand cross-chain support, and its fiat on-ramps and off-ramps. These changes, as stated by the company, aim to provide more regular settlement procedures and facilitate transactions involving stablecoins.

According to Circle, the collaboration helps maintain a stablecoin framework with a focus on speed and transparency. The firms explained that the project was part of a wider technical strategy, the initial step of which was to complete the USDC implementation in the trading and payment channels already present on the exchange.

Both parties reported that they would continue working on enhancing the basic infrastructures on which the stablecoin will operate in the international markets. Bybit also highlighted potential opportunities in the European Economic Area, where Circle is licensed under the Markets in Crypto-Assets (MiCA) regulatory regime.

Regulatory developments shape the partnership’s direction

The deal is a continuation of the regulatory procedures undertaken by Bybit during the year. The exchange recently acquired a full Virtual Asset Platform Operator license from the UAE Securities and Commodities Authority, one of the most comprehensive licenses it has received to date.

Further regulatory coverage has been implemented in EEA, Turkey, and Latin America, indicating a desire by Bybit to venture into markets where formal regulation is on the rise.

A regular reporting structure also characterizes the partnership at Circle. USDC is fully backed by cash and short-term U.S. Treasuries in a 1:1 ratio, with cash held by regulated financial institutions. The stablecoin is also being supported by monthly attestations, which Circle has been doing over the years.

Stablecoin use cases expand as settlement needs grow

The partnership aligns with the growing adoption of stablecoins in remittances, merchant payments, business transactions, and online marketplaces. The features of stablecoin settlement have recently been introduced by market participants in Eastern Europe, the Middle East, and Africa, indicating that the need for dependable digital-asset payment infrastructure will persist.

Bybit also partnered with Mastercard earlier this year to integrate blockchain-based layers into specific payment processes.

Both firms referred to the alliance as the start of more long-term growth, with future stages focusing on liquidity gains, controlled access, and further expansion of interoperability.

The smartest crypto minds already read our newsletter. Want in? Join them.