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fintech/news//CoinDesk
Bybit is the world's second-largest crypto exchange by trading volume.
Bybit has launched IPO Express, letting retail investors buy tokenized shares of SpaceX's anticipated IPO.
KEY POINTS
Bybit is only the second crypto exchange after Kraken to offer tokenized IPO participation for global users.
Unlike previous offerings on Binance or Bitget, Bybit provides actual tokenized share access, not just derivatives.
Bybit's xStocks-backed service allows extended trading hours and DeFi interoperability for tokenized listed stocks.
This marks the first time crypto exchange users can purchase IPO-priced shares, not just post-IPO secondary market tokens.
Bybit, the world's second-largest crypto exchange by trading volume, has joined the tokenization race to capture the highly-anticipated public listing of SpaceX later this week with its new Bybit IPO Express service.
The Dubai-based exchange is the second crypto exchange to offer tokenized initial public offerings (IPO) following Kraken. Its parent company Payward said it would soon allow its Kraken customers and xStocks alliance members to participate in U.S.-listed IPOs through tokenized shares.
Binance, Bitget and Gate previously offered pre-IPO markets in the form of derivatives. That means investors are not actually buying the actual shares.price. Instead, they are betting on a prediction market or trading IOUs based on what they believed the company would be worth.
Bybit'sIPO services are powered by Payward Services' xStocks and are eligible retail investors worldwide who can participate in blockbuster IPO projects by subscribing to tokenized representations of publicly traded equities.
“The launch marks a fundamental step in the convergence of traditional capital markets and crypto-native infrastructure, as exchanges increasingly compete to expand beyond digital asset trading into broader financial services,” Bybit said in its press release.
The aim of such services is democratize access millions of users to participate in IPOs that were previously only available to institutional investors, private banking clients, and select brokerage networks.
Bybit also said that through xStocks' regulated blockchain, holders of tokenized listed stocks can access extended trading hours, Decentralized Finance (DeFi) composability and flexibility and crypto-native settlement.
“For Bybit customers, it is the first time cryptocurrency exchange users can purchase shares at IPO pricing outside of the competitive secondary market,” the press release added.