Bybit, a leading crypto exchange based in Dubai, has introduced a new feature that allows eligible retail and institutional users to use tokenized shares of major tech giants like Nvidia, Apple, and Tesla as collateral for margin trading and borrowing. This move significantly enhances the financial utility of blockchain-based equities and positions Bybit at the forefront of the evolving tokenized assets market.
Tokenized Stocks as Collateral
The update, available through Bybit’s Unified Trading Account, Crypto Loans, and Institutional Loans, covers tokenized shares of Nvidia (NVDAX), Robinhood (HOODX), Circle (CRCLX), Tesla (TSLAX), Alphabet (GOOGLX), and Apple (AAPLX). The feature is subject to Bybit’s lending terms and product availability, ensuring a secure and regulated environment for users.
Expanding the Tokenized Equities Market
Bybit first introduced xStocks in June through a partnership with tokenization platform Backed, listing over 60 tokenized US stocks and exchange-traded funds on its spot market. These assets are backed 1:1 by the underlying securities, which are held by a regulated custodian. The expansion of tokenized equities as collateral is a significant step forward, reflecting the growing acceptance and integration of blockchain technology in traditional finance.
Industry Trends and Competitor Moves
Other exchanges have also been expanding the use of tokenized equities as collateral. Kraken, which agreed to acquire Backed in late 2025, began accepting select tokenized stocks and exchange-traded funds as collateral for futures and margin trading earlier this month. Bitget has similarly introduced tokenized stocks as collateral for futures margin and crypto loans.
Growth of the Tokenized Equities Market
Data from RWA.xyz shows that the tokenized equities market has seen a sharp expansion over the past year, with the total distributed value rising from approximately $361 million in late July 2025 to about $1.72 billion today. This growth underscores the increasing demand for tokenized assets and their role in enhancing liquidity and accessibility in the financial markets.
Forward-Looking Insights
Bybit’s move to allow tokenized stocks as collateral is a strategic play that aligns with the broader trend of integrating blockchain technology into traditional finance. As more exchanges and financial institutions adopt tokenized assets, we can expect to see increased innovation and a more interconnected financial ecosystem. This could lead to new opportunities for retail and institutional investors, as well as a more efficient and transparent market.
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