Bybit, the world’s second-largest crypto exchange by trading volume, has joined the tokenization race to capture SpaceX’s long-awaited public listing 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 clients 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. That means investors aren’t actually buying the true price of the stock. Instead, they are betting on a prediction market or trading notes based on what they believed the company would be worth.
Bybit’s IPO Services are powered by xStocks from Payward Services and are eligible retail investors worldwide who can participate in blockbuster IPO projects by subscribing to tokenized representations of publicly traded stocks.
“The launch marks a critical 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 objective of such services is to democratize the access of 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 the regulated xStocks blockchain, holders of tokenized listed stocks can access extended trading hours, composability and flexibility of Decentralized Finance (DeFi), and crypto-native settlement.
“For Bybit customers, it is the first time that users of the cryptocurrency exchange can buy shares at IPO prices outside of the competitive secondary market,” the press release added.
Bybit said the registration period for the SpaceX IPO is June 7-11. The allocation takes place on June 11 and 12, the day the token will also be publicly available for trading on the Bybit spot market. Elon Musk’s SpaceX plans a $75 billion initial public offering on June 12 at a valuation of $1.75 trillion, making it among the largest in history.
