Singaporean cryptocurrency derivatives exchange Bybit has announced that it has opened a fiat gateway to its platform. The new feature will allow users to buy cryptocurrency using a credit or debit card, or via bank transfer. The news comes thanks to a partnership between Bybit and payment providers Banxa and Xanpool.
Over 20 fiat currencies are supported on the Bybit fiat on ramping service, allowing users to purchase Bitcoin or Ethereum with Visa, Mastercard, and other debit and credit cards. Previously, users of Bybit would have had to purchase crypto via another exchange, and then transfer the funds into their Bybit account to start trading.
Therefore, the new feature represents a significant reduction of friction for Bybit users who want to start trading cryptocurrency derivatives quickly to profit from market movements.
Bybit CEO, Ben Zhou, said of the new feature:
"Adding fiat-crypto support is another major milestone in our roadmap and a major coup for Bybit traders who have been patiently waiting for this day to arrive. Thanks to our payment partners Banxa and Xanpool, Bybit users can now frictionlessly purchase crypto with credit or debit cards at some of the most competitive rates on the market."
To celebrate the new fiat gateway, Bybit is running a limited-time promotional giveaway. Anyone who uses the service will receive a bonus of $10 worth of Bitcoin for every $100 of cryptocurrency (BTC or ETH) they purchase. Users can earn up to a maximum of $50 worth of BTC while the promotion is running. The offer ends on July 22.
A Gateway to Further Growth?
Cryptocurrency derivatives have exploded in popularity over the last year or so. As recently as 2017, BitMEX was virtually the only player in the space. However, now, trading volumes are reaching all-time monthly highs above $600 billion as speculators flock to bet on the movements of Bitcoin. Crypto derivatives are also increasing market share, increasing by 5% to take nearly a third of the overall digital asset trading activity in May.
A large part of the reason for this popularity is that crypto derivatives offer the opportunity to speculate on the price of cryptocurrencies, but without any of the headache of taking custody of the underlying assets. Most venues, including Bybit, offer high leverage of up to 100x, meaning traders can magnify profits to take gains from even minor market movements.
However, pure-play derivatives platforms such as Bybit have been historically at a disadvantage compared to hybrid spot and derivatives exchanges such as Binance, that offer fiat onboarding. Bybit is now one of the first pure-play crypto derivatives venues to offer users the opportunity to buy in with fiat and start trading immediately.
The company has already been undergoing some impressive growth over recent months. May’s record-breaking trading figures also proved beneficial to Bybit, which broke its own previous record of $4 billion in 24-hour trading volume for BTC futures on Sunday, May 10.
For comparison purposes, BitMEX was only slightly ahead with $5.5 billion on the same day.
Now, the introduction of fiat onboarding makes Bybit an even more attractive prospect by removing a critical point of friction. It will be intriguing to see if this move propels Bybit towards surpassing the trading volumes of its Seychelles-based rival.