Under the framework, eligible institutions deposit USD or U.S. Treasury Bills with Bybit's designated banking partners, which are well-established international banking institutions. This step establishes the triparty arrangements and Bybit provides approved borrowing capacity. Institutions then receive USDT loans directly into their Bybit Unified Trading Account (UTA), unlocking immediate access to Bybit's trading venues without requiring collateral transfer into alternative arrangements. The collateral remains in third-party custody during the term.
By placing collateral with an independent regulated banking partner, Bank Triparty removes counterparty risk while preserving collateral security. In addition to enhanced custodian structure, institutions also continue to earn yield on collateral held with the banking partner during the borrowing period. Simultaneously, they unlock additional capital for deployment across Bybit's spot, margin, perpetual, and options markets.
Bybit Bank Triparty Framework - Highlights:
- Counterparty risk mitigation: Counterparty risk is distributed off-exchange by having the collateral held with independent and regulated banking partners.
- Capital efficiency: Immediate USDT financing without collateral transfer or restructuring, reducing fees and potential delays.
- Yield preservation: U.S. Treasury Bill collateral continues accruing APR throughout the lending period.
- Bybit UTA integration: Borrowed USDT deposits directly into Bybit UTA, enabling institutions to deploy additional liquidity across spot, margin, perpetual, and options markets on Bybit without modifying existing infrastructure.
- Prudent risk parameters: Lower collateral-to-loan ratios backed by USD cash and U.S. Treasury securities.
Eligible institutional clients can initiate onboarding through their dedicated Bybit Relationship Manager. For full eligibility requirements, collateral specifications, approved banking partners' details, risk parameters, and operational procedures, users may visit: Introducing Bank Triparty: Borrow on Bybit with Bank-Held Collateral
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About Bybit
Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 80 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.
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