Ethena Labs has partnered with crypto exchange Bybit to introduce its synthetic stablecoin USDe as a collateral asset for perpetual futures trading on Bybit’s Universal Trading Account.

The collaboration, as detailed in a recent press release, will enable users to leverage USDe for trading while potentially unlocking new avenues for yield generation and enhanced capital efficiency.

Alongside its integration as a collateral asset, USDe will also be paired with Bitcoin (BTC) and Ethereum (ETH) for spot trading, providing Bybit users with more flexible trading options. Additionally, Ethena’s stablecoin will become part of Bybit’s Earn platform, allowing participants to utilize their USDe for launchpool farming.

Excited to share one of the most important developments for USDe adoption to date

USDe will be integrated into @Bybit_Official:

i) Collateral to trade perpetuals while potentially capturing yield
ii) BTC and ETH spot pairs with zero trading fees
iii) Within the Earn platform pic.twitter.com/zDDO2WdeNf

— Ethena Labs (@ethena_labs) May 7, 2024

Guy Young, founder and CEO of Ethena Labs, highlighted the partnership’s significance, emphasizing its potential to challenge the dominance of existing stablecoins.

“Offering USDe as collateral on Bybit, one of the most important derivative venues in all of crypto, will unlock USDe’s next wave of growth,” Young said.

Billed as “the first-ever scalable synthetic dollar,” USDe seeks to distinguish itself in the competitive stablecoin market. Ethena Labs recently expanded its backing assets to include Bitcoin and distributed its governance token, ENA, to eligible users.

This strategic move, coupled with its collaboration with Bybit, positions USDe to gain further traction among crypto traders.