Skip to content
Finance — Investing — All about technology.

Partnership between Bybit and Backed leads to the introduction of xStocks on the Spot platform

Cryptocurrency exchange Bybit joins forces with Swiss issuer Backed, aiming to merge traditional finance with the burgeoning digital asset world. The partnership will make it possible to offer tokenized forms of U.S. stocks and exchange-traded funds (ETFs) on Bybit's Spot platform.

,   and  Administrator
2 min read
Took it upon themselves, Bybit and Backed, to set xStocks in motion on their Spot platform
Took it upon themselves, Bybit and Backed, to set xStocks in motion on their Spot platform

Partnership between Bybit and Backed leads to the introduction of xStocks on the Spot platform

Cryptocurrency exchange Bybit has taken a significant step forward in its mission to redefine access to global financial instruments. By partnering with Backed, Bybit is now offering tokenized representations of over 60 U.S.-listed stocks and ETFs, including major names such as SPY, Apple, Tesla, and NVIDIA.

This collaboration marks a significant milestone in the growing convergence between traditional and decentralized financial systems. Bybit users can now trade these blockchain-based tokens, known as xStocks, directly on the exchange platform.

xStocks are issued as tokens compatible with both Ethereum (ERC-20) and Solana (SPL), ensuring cross-platform accessibility and ease of integration into decentralized wallets or other blockchain-based applications. This move enhances connectivity between centralized finance (CeFi) and decentralized finance (DeFi), allowing for seamless trading in USDT and integration with DeFi protocols.

24/7 Accessibility and DeFi Integration

Unlike traditional stock markets, which operate during limited hours, xStocks can be traded around the clock on the blockchain. This means users can take advantage of trading opportunities at any time, breaking the limitations of conventional exchanges. Furthermore, xStocks can be transferred between wallets or used in DeFi applications, providing increased accessibility and flexibility.

Fractional Ownership and Lower Barriers

The model for xStocks allows users to own fractional shares via tokens, lowering the financial threshold for investing in expensive equities and ETFs. This feature significantly reduces entry barriers for retail investors, making it easier for a wider audience to participate in the global stock market.

Regulatory Compliance and Custody Security

The partnership provides a robust compliance framework whereby the underlying shares are held securely by regulated custodians. The tokens minted on-chain at a 1:1 ratio assure asset backing and investor confidence. Despite this, token holders typically do not receive shareholder rights such as voting or dividends automatically. Redemption for physical shares often requires stringent KYC and additional fees, making these tokens more suitable for speculation rather than direct shareholder participation.

Market Expansion and Liquidity

This partnership positions Bybit competitively in the growing tokenized stock market, expanding the market with over 60 tokenized assets and capturing both crypto and traditional investors looking for hybrid financial instruments. By merging the liquidity and stability of legacy assets with the transparency and efficiency of blockchain infrastructure, Bybit aims to offer an investment experience that caters to the modern trader.

Regulatory Landscape

Bybit’s approach reflects a hybrid model that addresses regulatory scrutiny by classifying tokenized stocks as securities requiring registration, balancing compliance with innovative trading models.

In essence, the partnership enables Bybit to offer innovative, blockchain-based access to real U.S. equities and ETFs, expanding trading options with improved liquidity, accessibility, and integration with crypto ecosystems while navigating regulatory challenges and clarifying the limits on shareholder rights.

Read also:

Related

Latest