Bybit upgrades Bitcoin staking vault with a 1.2% guaranteed return

Bybit, recognized as the world's second-largest cryptocurrency exchange by trading volume, has announced a major upgrade to its Bitcoin staking vault within its On-Chain Earn platform. The enhanced product offering is made possible through a strategic partnership with Function (FBTC), designed to provide enhanced decentralized finance earning opportunities directly to exchange users. Under the upgraded framework, Bybit has raised the guaranteed annualized percentage rate (APR) on its Bitcoin staking vault from the previous rate of 0.8% to as much as 1.2%. This revision represents an approximate 50% increase in staking yields, allowing long-term Bitcoin holders to generate passive returns on their capital without exiting spot crypto allocations. The collaboration highlights a broader competitive shift among major digital asset exchanges to provide attractive yield-bearing mechanisms and integrate institutional-grade DeFi products. Enhancing staking incentives on flagship cryptocurrencies is expected to bolster user retention, support liquidity locked in earning vaults, and satisfy rising investor demand for on-chain yields.