Bybit Uses Tokenized Equities as Underlyings for Structured Yield Products
New investment options with tokenized stocks of companies like Meta, Tesla, and Robinhood.
1New Product with Tokenized Equities
Bybit is offering structured yield products using tokenized equities on its platform. Stocks of companies like Meta, Tesla, Robinhood, and Circle serve as underlyings for the Dual Asset product. Users can take short-term positions with these products. Existing offerings include tokenized stocks of SpaceX, Nvidia, and Apple.
2How It Works
Dual Asset is a non-principal-protected investment product. Users select an asset pair, investment period, and target price. The product promises a fixed return, but the outcome depends on the performance of the underlying asset relative to the target price. Payouts can be made in the alternative asset instead of the initially chosen one. Bybit warns users to review risk factors.
3Newly Added Asset Pairs
Bybit added METAXUSDT, TSLAXUSDT, HOODXUSDT, and CRCLXUSDT pairs, increasing the number of supported tokenized stocks from six to ten. Nvidia-linked stocks saw the highest demand, while SpaceX recorded the highest trading volume. The new additions cover sectors like AI, electric vehicles, and financial services.
4Growing Tokenized Equity Market
The tokenized equity segment is expected to reach $1.48 billion and 352,000 wallets by mid-2026. Since the start of the year, market value has grown by 114%, and wallet count has increased by 188%. However, the segment still lags behind stablecoins and tokenized government debt. Exchanges are developing new products to tap into this growth potential.
5Legal and Regional Restrictions
Bybit's tokenized equity products are unavailable to users in major markets like the US and UK. The products follow the same eligibility requirements and regional restrictions as xStocks. Users should carefully review product documentation before investing, as tokenized stocks do not offer direct equity rights.
6Tokenized vs. Traditional Stocks
Tokenized equities have a different structure than traditional stocks. A company's stock, its tokenized version, and a structured product referencing that token are three separate instruments. Tokenized stocks are described as collateralized instruments, but legal rights depend on issuer terms.
7Bybit's Competitive Edge
Bybit is the first centralized exchange to use tokenized equities as underlyings for structured yield products. These products are one step removed from direct tokenized stock trading. xStocks track an equity position, while Dual Asset uses the token as a reference for a different investment experience.
8Future of Tokenized Assets
Tokenized equities bridge the gap between traditional finance and crypto. Platforms like Bybit combine these instruments with structured products to offer investors more options. However, regulatory uncertainties and regional restrictions remain key challenges for market growth.