Bybit Boosts Collateral Options with Tokenized Stocks
Bybit, a crypto exchange based in Dubai, has expanded the use of tokenized stocks as collateral for margin trading and lending products. The update allows eligible users to utilize tokenized shares of Nvidia (NVDAX), Robinhood (HOODX), Circle (CRCLX), Tesla (TSLAX), Alphabet (GOOGLX) and Apple (AAPLX) as collateral. This feature is available through Bybit's Unified Trading Account, Crypto Loans and Institutional Loans, subject to the exchange's lending terms and product availability.
The introduction of tokenized stocks as collateral builds on Bybit's existing partnership with Backed, a tokenization platform. Through this partnership, over 60 tokenized US stocks and exchange-traded funds have been listed on Bybit's spot market since June. These assets are backed 1:1 by the underlying securities, held by a regulated custodian.
Other exchanges, such as Kraken and Bitget, have also begun accepting tokenized equities as collateral for various products. The growth of tokenized equities is evident in data from RWA.xyz, which shows total distributed value rising from approximately $361 million in late July 2023 to about $1.72 billion today.