Cryptocurrency exchange Bybit distributes $300,000 in USD1 airdrop upon the launch of the new stablecoin USD1 on its spot trading platform.
The cryptocurrency exchange platform, Bybit, has listed a new US dollar-backed stablecoin, USD1, issued by BitGo. This stablecoin, branded as World Liberty Financial (USD1), aims to challenge the dominance of USDT in the stablecoin market by being transparent and real-world-asset-backed.
Fiat-backed and Fully Collateralized
USD1 is fully dollar-backed, with reserves in cash deposits and short-term U.S. Treasuries, ensuring a 1:1 backing for each token. This fiat-backed and fully collateralized structure provides stability and confidence to users.
Zero-Fee Conversions, Fast Redemption, and Institutional-Grade Security
Zero-fee conversions between fiat currency and USD1 tokens simplify the minting and redemption processes, while fast redemption enables users to redeem tokens for fiat within two business days. The institutional-grade security features multi-signature approval for transactions and audited smart contracts with no critical vulnerabilities, securing liquidity and custody at a high standard.
Multiple Use Cases and Market Adoption
USD1 offers multiple use cases, including retail payments via WLFI-issued debit cards, liquidity provision on centralized and decentralized exchanges, and integration within DeFi platforms for lending, borrowing, and yield generation. As of August 2025, the stablecoin has a significant market capitalization of about $2.21 billion USD1 tokens and healthy trading volume (~$572.7 million in 24 hours), signaling strong liquidity and user engagement.
Bybit's Promotional Events
Bybit has opened USD1 deposits and launched the MNT/USD1 trading pair on July 9, 2025. To drive liquidity and onboarding, Bybit has announced two promotional events offering a combined 300,000 USD1 in rewards.
Event 1 offers 150,000 USD1 to new users who complete identity verification and deposit or trade at least 100 USD1/USDT. However, users from restricted regions, including the European Economic Area (EEA), cannot participate in these promotional events. Bybit has outlined strict participation terms for both promotional events.
Event 2 offers 150,000 USD1 to active Spot traders who trade at least 500 USDT worth of USD1, with rewards of up to 700 USD1 per user. These events run until July 23, 2025.
Ecosystem-Driven Rewards Program
Beyond these promotional events, the broader promotional strategy for USD1 involves a USD1 Points Program. This loyalty initiative blends traditional rewards with decentralized finance incentives, such as yield boosts, NFTs, and cashback earned through staking, trading, or DeFi participation. Bybit's involvement likely complements this strategy by leveraging exchange liquidity and user base.
Deposits and withdrawals for USD1 are supported via the ETH and BSC networks. However, institutional accounts and market makers are not eligible for the promotional events. Only users who click "Register Now" will be eligible for rewards, and redemption rights for eligible users are similar to USDC.
In summary, USD1 issued by BitGo offers a secure, cost-efficient, and versatile stablecoin supported by a novel ecosystem-driven rewards program to encourage adoption and use. Bybit’s involvement likely complements this strategy by leveraging exchange liquidity and user base, although direct promotion details by Bybit were not found in the available information.
- Bybit's listing of the new stablecoin USD1, issued by BitGo, aims to challenge the dominance of USDT in the stablecoin market by offering a transparent and real-world-asset-backed alternative.
- The zero-fee conversions between fiat currency and USD1 tokens offered by Bybit simplify the minting and redemption processes, while fast redemption enables users to redeem tokens for fiat within two business days.
- With significant market capitalization and healthy trading volume, USD1 offers multiple use cases, including retail payments, liquidity provision on centralized and decentralized exchanges, and integration within DeFi platforms for lending, borrowing, and yield generation.
- To drive liquidity and onboarding, Bybit has announced two promotional events offering a combined 300,000 USD1 in rewards, with eligibility criteria and redemption rights similar to USDC.
- Beyond promotional events, the broader promotional strategy for USD1 involves a USD1 Points Program, blending traditional rewards with decentralized finance incentives, such as yield boosts, NFTs, and cashback earned through staking, trading, or DeFi participation.
