Bybit challenges Wall Street with a massive push into tokenized U.S. stock IPOs
Key takeaways
- Binance, Bitget and Gate previously offered pre-IPO markets in the form of derivatives.
- 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.
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.