USDC is increasingly used beyond trading for payments, treasury operations and institutional collateral, and Bybit has moved to expand access on the XDC Network. Cross‑chain tooling and exchange‑led incentives aim to lower costs and improve liquidity for on‑chain settlement, positioning USDC for broader adoption across enterprise and retail use cases.
Stablecoin usage now spans payments, DeFi liquidity, corporate treasury and tokenized assets, extending well past spot trading. USDC’s transparency and peg to the U.S. dollar have encouraged its role in cross‑border payments and remittances, where speed and lower fees challenge legacy correspondent banking.
In decentralized finance, USDC supplies lending pools, yield strategies and liquidity for derivatives and settlement, while major financial firms experiment with tokenized assets and treasury workflows that rely on USDC. Payments infrastructure firms are also integrating the stablecoin for faster settlement.
Institutional collateral usage is advancing under a CFTC pilot, with Coinbase Derivatives and Nodal Clear working to permit USDC in U.S. futures trading, signaling a potential bridge between regulated markets and blockchain‑native settlement. Circle’s reported issuance scale further underpins this adoption by offering predictable liquidity for market participants.
Bybit has enabled native USDC deposits and withdrawals on the XDC Network, relying on Circle’s Cross‑Chain Transfer Protocol V2 (CCTP V2). This protocol moves native USDC between blockchains using a burn‑and‑mint model, avoiding wrapped tokens and typical bridge congestion, which reduces friction, lowers transaction costs and shortens settlement latency for users moving funds between networks.
Bybit’s XDC integration and technical enablers
To accelerate onboarding, Bybit introduced waived withdrawal fees for USDC on XDC and a 200,000‑USDC reward program for new users. The exchange plans to fold USDC into multiple products across its platform, including spot and derivatives trading, savings products, card rewards and payments, and intends to offer USDC‑settled perpetual and futures contracts for institutional and retail clients.
The XDC Network targets enterprise use cases such as trade finance and real‑world asset tokenization, and Bybit’s support aims to increase liquidity on XDC while positioning the chain as a venue for institutional settlement and tokenized asset workflows.
Regulatory initiatives and pilots are expanding the perimeter of acceptable stablecoin use, but risks remain. USDC is not FDIC insured and carries exposures common to on‑chain assets, including smart‑contract or network instability and occasional de‑pegging events. Legislative proposals and regulatory programs are creating more clarity in some jurisdictions, yet market participants should treat operational and counterparty risks explicitly.
The CFTC’s pilot and payments‑related proposals will shape the pace of institutional deployment of USDC for margin, settlements and treasury activity. Firms and compliance teams will need to map jurisdictional constraints and custody arrangements before scaling use.
USDC’s role is moving from a trading utility to a broader settlement and liquidity instrument, supported by cross‑chain protocols and exchange adoption.
