Bybit Collaborates with Circle to Enhance USDC Liquidity

Circle, the publicly-traded issuer of one of the largest US dollar stablecoins worldwide, has formed a strategic alliance with cryptocurrency exchange Bybit.

Bybit has partnered with an affiliate of Circle to enhance the liquidity and usability of its USDC (USDC) stablecoin, as announced in a joint announcement released on Monday.

“The collaboration aims to broaden USDC access within Bybit’s global ecosystem, bolster the liquidity of the world’s largest regulated stablecoin, and solidify Bybit’s standing as a regulatory-compliant platform focused on transparency and trust,” stated the companies.

The partnership comes as USDC gains traction, with its market capitalization soaring to historic highs, approaching $80 billion.

Bybit to enhance USDC integration across spot, derivatives, and payment channels

“Bybit’s collaboration with Circle enables us to deepen USDC integration across spot, derivatives, and payment channels within a transparent and compliant framework,” a Bybit spokesperson conveyed to Cointelegraph.

The exchange is closely cooperating with Circle to improve liquidity provisioning, enhance fiat on-ramps and off-ramps, and expand cross-chain support, the representative added:

“This partnership is merely the beginning — particularly in the EEA region, where Circle enjoys a robust regulatory presence under MiCA. We perceive significant opportunities to broaden USDC’s utility and offer even more reliable settlement solutions for global users.”

Bybit’s spokesperson noted that the exchange began integrating USDC several years ago, starting with spot and perpetual trading pairs and later extending it to savings products, institutional settlements, conversion tools, and fiat payment channels.

Related: Ethena’s synthetic USDe contracts sharply as dollar-backed stablecoins expand

“Currently, USDC is already woven into our ecosystem, and this new strategic partnership fortifies the foundational infrastructure with improved liquidity, quicker settlements, and broader use cases,” Bybit reported.

USDC market cap approaching $80 billion

The Bybit–Circle alliance caps off a year of substantial growth for USDC, with the stablecoin nearly doubling its market capitalization since the beginning of 2025.

From January 1, 2025, the market capitalization of USDC has surged by 77%, climbing from around $44 billion to $78 billion as of December 7, according to data from CoinGecko.

This growth coincides with Circle increasingly pursuing partnerships in traditional finance, including collaborations with global exchange organization Deutsche Börse, payment giant Mastercard, and others.

In comparison, Tether, the largest stablecoin by market capitalization, has seen its market cap rise approximately 36% since the start of the year, increasing from about $137 billion to $186 billion.

“Bybit supports various stablecoins and is dedicated to providing users with options. Our partnership with Circle is not based on exclusivity,” a Bybit spokesperson stated, adding: “It reflects our commitment to transparency and regulatory clarity as the industry evolves.”