Bybit, the world’s second-largest crypto exchange by trading volume, has joined the tokenization race to secure SpaceX’s highly anticipated public listing later this week. With its new Bybit IPO Express service.
The Dubai-based exchange is the second crypto exchange to offer a tokenized initial public offering (IPO) after Kraken. Its parent company Payword said it will soon allow its Kraken users 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 share price. Instead, they are betting on the prediction market or trading IOUs based on what they believe the company will be worth.
Bybit’s IPO services are powered by Payward Services’ xStocks and eligible retail investors worldwide can participate in blockbuster IPO projects by subscribing to tokenized representations of publicly traded equities.
“This 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 to broader financial services,” Bybit said in its press release.
Such services aim to democratize access to millions of users to participate in IPOs 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 local settlement.
“For Bybit users, this is the first time that cryptocurrency exchange users can buy shares at IPO prices outside of the competitive secondary market,” the press release added.
The registration period for the SpaceX IPO runs from June 7 to 11, Bibit said. The allocation follows on June 11 and 12, the day the token also becomes 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, making it one of the largest IPOs ever.