Bybit, the world’s second-largest crypto exchange by trading volume, has joined the tokenization race to catch the long-awaited 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 (IPOs) after Kraken. Its parent company Payward said it would soon allow its Kraken customers and xStocks alliance members to participate in US-listed IPOs through tokenized shares.
Binance, Bitget and Gate previously offered pre-IPO markets in the form of derivatives. This means that investors are not actually buying the actual share price. Instead, they bet on a prediction market or trade IOUs based on what they thought the company would be worth.
Powered by Payward Services’ xStocks, Bybit’s IPO services are qualified retail investors worldwide who can participate in blockbuster IPO projects by subscribing to tokenized representations of listed shares.
“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 purpose of such services is to democratize access for millions of users to participate in stock market listings previously only available to institutional investors, private banking clients and select brokerage networks.
Bybit also said that via xStocks’ regulated blockchain, holders of tokenized listed shares can access extended trading hours, Decentralized Finance (DeFi) composition and flexibility, and crypto-native settlement.
“For Bybit customers, this is the first time cryptocurrency exchange users can purchase shares for listing outside of the competitive secondary market,” the press release added.
Bybit said the registration period for the SpaceX IPO is from June 7 to 11. The award will follow on June 11 and 12, the day the token will also be publicly available for trading on the Bybit spot. Elon Musk’s SpaceX is planning a $75 billion IPO on June 12 at a valuation of $1.75 trillion, ranking among the largest ever.
