Crypto to Stocks: Bybit Adds 1000+ US Listings, But Ownership Uncertainty Remains
Key Summary
Bybit allows users to buy over 1,000 US stocks with crypto, but the actual ownership is unclear due to different versions of the service, and users may not own registered shares. Alpaca Securities holds the shares, protecting customers up to $500,000. Bybit users share in stock gains and losses but are not registered shareholders.
Bybit Enables Crypto to Stocks Trading
Bybit has announced that users can now buy over 1,000 US stocks and ETFs with crypto, using USD Coin (USDC) as the stablecoin.
However, the platform specifies that users do not own registered shares, but rather an economic interest in the underlying stocks.
Alpaca Securities, a FINRA and SIPC member broker, holds the actual shares and protects customers up to $500,000.
Bybit users share in the stocks' gains and losses and receive dividends, but their names do not appear on official company records.
The platform converts cash dividends from US stocks to USDC and credits them to the user's account, while stock dividends and stock splits are added to their positions.
Bybit expects to offer voting rights for company meetings in the future, but currently, users do not have this privilege.
The announcement did not specify which countries are included for Bybit users, and the platform restricts access to eligible users in specific jurisdictions who have completed KYC identity checks.
Bybit co-founder and CEO Ben Zhou emphasized that this launch aims to broaden access to financial markets, allowing users to explore more opportunities.