Bybit has introduced four additional tokenised equity products as underlying assets for its Dual Asset structured yield offering, expanding the role of synthetic stock exposure within crypto-native yield structures. The exchange added xStocks linked to Meta, Tesla, Robinhood and Circle, bringing the total available underlyings to ten alongside earlier listings covering SpaceX, Nvidia, Apple, Alphabet, Coinbase and Amazon.
Dual Asset is a non-principal-protected product where users select an asset pair, investment period and target price to earn a fixed expected return. Settlement depends on where the underlying xStock trades relative to the chosen level, meaning users face both price risk and settlement asset risk. The payout may be delivered in the alternative asset rather than the originally selected token, distinguishing this product from simple tokenised equity holding or spot trading.
Bybit claims to be the first centralised exchange offering xStocks as reference assets for structured yield products, positioning this as a derivative layer above tokenised stocks themselves. That structural layering matters for legal and regulatory clarity. An xStock is not a direct company share but a tokenised instrument backed by underlying securities, with rights governed by issuer documentation. A Dual Asset product referencing an xStock adds further contractual complexity and introduces contingent settlement terms.
For brokers and fintech platforms considering tokenised equity offerings, the regulatory treatment remains fragmented across jurisdictions and depends on whether products are classified as securities, derivatives or crypto assets.
FXnCO Insight
Tokenised equities used as underlyings for structured products create layered exposure that may trigger multiple regulatory regimes simultaneously, requiring careful legal mapping before launch.
Source: Finance Magnates