Blab Tech
Bybit Expands Collateral Options to Include Six Tokenized Equities
Bybit, the Dubai‑based cryptocurrency exchange that ranks as the world’s second‑largest by spot trading volume, announced on July 31 2026 that six tokenized equity tokens—NVDAX, HOODX, CRCLX, TSLAX, GOOGLX and AAPL—will be accepted as collateral for margin trading, crypto loans and institutional loans.
The update takes effect at 08:00 UTC on the announcement date. Eligible users, both retail and institutional, can now use any of the six xStock tokens in their Unified Trading Account (UTA) to borrow funds, increase leverage on spot positions or access institutional‑grade lending products.
xStocks are digital tokens that represent shares of publicly traded U.S. companies. Each token is fully collateralized on a 1:1 basis by the underlying share held in custody by the issuer, Backed Finance, a MiFID II‑compliant firm. The tokens are designed to track the price of the underlying equity through a pegging and arbitrage mechanism. According to Backed’s documentation, corporate actions such as dividends or stock splits are handled by the issuer.
Bybit’s margin trading platform allows users to leverage their spot balances by pledging collateral. The new collateral set expands the types of assets that can be used to secure borrowed funds. The crypto loan product lets users borrow cryptocurrency against their crypto or tokenized equity holdings, while the institutional loan offering provides larger, customized borrowing solutions for professional clients.
The addition of xStocks aligns with Bybit’s stated goal of bridging traditional financial assets with crypto‑native infrastructure. By allowing tokenized equities to serve as collateral, the exchange moves beyond static holding of tokenized stocks and enables active use of those assets within its lending and margin ecosystem.
The announcement was made through a press release on Bybit’s website and was also reported by several crypto‑news outlets. The release noted that the collateral‑backed borrowing options are available only for the six listed xStock tokens; other tokenized equities are not yet eligible.
Bybit’s Unified Trading Account (UTA) consolidates spot, perpetual, futures and options positions in a single account. The UTA Loan product, which includes the new collateral, offers fixed‑rate borrowing with up to 10× leverage and maturities of up to 180 days. Users can repay early and renew the loan until the final maturity date.
The move comes after Bybit’s partnership with Backed Finance, announced in 2025, which enabled the transfer of tokenized shares between the two platforms. The partnership also facilitated the integration of xStocks into Bybit’s trading and lending services.
While the update expands borrowing options, Bybit’s press release includes a standard risk warning. Users are reminded that margin trading and collateral‑backed loans carry significant risk, including potential margin calls, forced liquidations and loss of collateral if the value of the underlying asset declines.
As of the announcement, Bybit has not disclosed any changes to interest rates or borrowing limits for the new collateral. The exchange also did not indicate whether the addition will affect regulatory compliance or reporting requirements.
In summary, Bybit’s July 31 update allows traders to use six tokenized U.S. equities as collateral for margin trading, crypto loans and institutional loans. The change expands the utility of xStocks beyond passive holding and integrates them into Bybit’s broader lending and margin framework. The update is part of the exchange’s ongoing effort to merge traditional financial instruments with blockchain‑based infrastructure.
The next steps for users will involve verifying eligibility, adding the new collateral to their UTA, and monitoring the terms of the loan products. No further regulatory filings or product launches have been announced at this time.
The update takes effect at 08:00 UTC on the announcement date. Eligible users, both retail and institutional, can now use any of the six xStock tokens in their Unified Trading Account (UTA) to borrow funds, increase leverage on spot positions or access institutional‑grade lending products.
xStocks are digital tokens that represent shares of publicly traded U.S. companies. Each token is fully collateralized on a 1:1 basis by the underlying share held in custody by the issuer, Backed Finance, a MiFID II‑compliant firm. The tokens are designed to track the price of the underlying equity through a pegging and arbitrage mechanism. According to Backed’s documentation, corporate actions such as dividends or stock splits are handled by the issuer.
Bybit’s margin trading platform allows users to leverage their spot balances by pledging collateral. The new collateral set expands the types of assets that can be used to secure borrowed funds. The crypto loan product lets users borrow cryptocurrency against their crypto or tokenized equity holdings, while the institutional loan offering provides larger, customized borrowing solutions for professional clients.
The addition of xStocks aligns with Bybit’s stated goal of bridging traditional financial assets with crypto‑native infrastructure. By allowing tokenized equities to serve as collateral, the exchange moves beyond static holding of tokenized stocks and enables active use of those assets within its lending and margin ecosystem.
The announcement was made through a press release on Bybit’s website and was also reported by several crypto‑news outlets. The release noted that the collateral‑backed borrowing options are available only for the six listed xStock tokens; other tokenized equities are not yet eligible.
Bybit’s Unified Trading Account (UTA) consolidates spot, perpetual, futures and options positions in a single account. The UTA Loan product, which includes the new collateral, offers fixed‑rate borrowing with up to 10× leverage and maturities of up to 180 days. Users can repay early and renew the loan until the final maturity date.
The move comes after Bybit’s partnership with Backed Finance, announced in 2025, which enabled the transfer of tokenized shares between the two platforms. The partnership also facilitated the integration of xStocks into Bybit’s trading and lending services.
While the update expands borrowing options, Bybit’s press release includes a standard risk warning. Users are reminded that margin trading and collateral‑backed loans carry significant risk, including potential margin calls, forced liquidations and loss of collateral if the value of the underlying asset declines.
As of the announcement, Bybit has not disclosed any changes to interest rates or borrowing limits for the new collateral. The exchange also did not indicate whether the addition will affect regulatory compliance or reporting requirements.
In summary, Bybit’s July 31 update allows traders to use six tokenized U.S. equities as collateral for margin trading, crypto loans and institutional loans. The change expands the utility of xStocks beyond passive holding and integrates them into Bybit’s broader lending and margin framework. The update is part of the exchange’s ongoing effort to merge traditional financial instruments with blockchain‑based infrastructure.
The next steps for users will involve verifying eligibility, adding the new collateral to their UTA, and monitoring the terms of the loan products. No further regulatory filings or product launches have been announced at this time.
