What are xStocks?
xStocks, launched by Backed in May 2025, are tokenized representations of real-world U.S. stocks and ETFs, such as Apple, Tesla, and the SPDR S&P 500 ETF. Bybit has partnered with Backed, the issuer of tokenized financial instruments, to list xStocks (tokenized equities and ETFs) on the Bybit Spot market. Each token is backed 1:1 by the underlying asset and can be accessed via both centralized and decentralized crypto exchanges, as well as leading DeFi protocols. For more information, please visit here.
How are xStocks tokens backed and kept at a 1:1 ratio with the underlying stocks?
xStocks are fully collateralized on a 1:1 basis by the corresponding publicly traded equities.
For every xStock token issued, the issuer acquires and holds an equivalent share of the referenced stock with a regulated, independent custodian. These shares are held on behalf of the issuer or its designated trustee, ensuring each token is economically linked to one real-world share.
Based on the number of shares held in custody, the issuer mints an equivalent number of xStock tokens, which are then made available for trading on Bybit.
What does it mean for xStocks to be listed on the Bybit Spot market?
This means Bybit now serves as a secondary market where users can easily trade tokenized stocks and ETFs directly on the Spot Market, 24/7. It allows users to diversify their portfolios with assets traditionally tied to legacy financial systems while benefiting from on-chain liquidity and global accessibility.
What are the mechanism and market dynamics of xStocks trading on Bybit?
The value of xStocks is designed to track the price of the corresponding underlying equity through a pegging and arbitrage mechanism maintained by the issuer. According to Backed Finance, each token is backed 1:1 by an actual share held with a regulated third-party custodian, and token issuance is structured to be verifiable on-chain.
Market participants, including market makers, play a crucial role by issuing and redeeming tokens from the issuer based on supply and demand dynamics. If the price of an xStock on Bybit deviates from the price of the underlying stock on traditional exchanges such as the NYSE or Nasdaq, arbitrageurs are incentivized to close the gap, similar to how arbitrage works in stablecoin markets.
This mechanism creates two interconnected markets:
- The primary market (U.S. stock exchanges), which is open during standard trading hours and serves as the price anchor.
- The secondary market (on-chain trading on Bybit), which operates 24/7.
Outside of U.S. market hours, the price of an xStock may fluctuate slightly, acting as a prediction market based on pre-market or after-hours news and sentiment.
Is an investment in xStocks the same as an investment in equities?
No. An investment in xStocks is not the same as a direct equity investment in the underlying stocks or companies to which they are economically linked. xStocks provide economic exposure to certain publicly traded equities and exchange-traded funds but do not grant holders any voting rights, dividend entitlements or legal claims to the underlying shares or company assets in the event of the underlying company's liquidation. Besides, investing in xStocks does not entitle holders to receive any information from the respective issuer or sponsor of the underlying stocks.
The respective issuer or sponsor of the underlying stocks is not involved in the offer and sale of xStocks and has no obligations toward xStock holders. xStocks are not sponsored, supported, or promoted in any way by the issuer or sponsor of the underlying stocks, and those entities may take actions regarding the underlying stocks without taking into account the interests of xStocks holders. As a result, xStocks holders are unlikely to have any ability to influence decisions related to the underlying stocks.
Who is eligible to trade xStocks on Bybit?
Only users who have completed the Standard Identity Verification or Business Verification are eligible to trade xStocks or participate in related events. Institutional users and market makers are not eligible to engage in any xStocks trading or associated events. For more details on Identity Verification, please refer to How to Complete Individual Identity Verification (KYC) and FAQ — Business KYC.
xStocks trading is not available to users in the following countries or regions:
- Regions listed in our Service Restricted Countries
- Australia
- Japan
- Countries within the European Economic Area (EEA): Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Iceland, Liechtenstein and Norway.
What trading pairs are available as xStocks on Bybit?
Bybit will offer popular xStocks tokens representing companies such as Coinbase (COINX), NVIDIA (NVDAX), Apple (AAPLX,) and more. For more listings, please stay tuned to our Announcement Center.
How can I buy xStocks on Bybit?
Go to the Spot Market and search for the respective trading pair listed under the xStocks. Make a deposit or transfer USDT to your Unified Trading Account, and you'll be able to buy xStocks. Learn more about getting started with Bybit xStocks trading here.
Are there any fees for trading xStocks trading pairs?
Yes, a trading fee will be charged for the xStocks trading pair, and it will follow the same fee structure as the trading pairs listed under the Adventure Zone. The table below shows the applicable trading fees for each VIP level:
Is there a maximum amount of xStocks tokens I can hold?
Yes. The maximum holding per token is capped at 300,000 USDT equivalent. For example, if token ABC is priced at 0.5 USDT, the maximum quantity of ABC tokens you can hold is 600,000 (calculated as 300,000 USDT ÷ 0.5 USDT = 600,000 tokens).
Please take note that once the position limit is hit, the rise in value will not have any effect on your holdings. You can still hold your position as normal. However, you will not be able to place new orders to increase position size. If orders were placed before the position limit reaches 300,000 USDT, these orders will not be cancelled or rejected, and can still be filled normally.
What are the minimum and maximum order values or quantities for xStocks tokens?
Please refer to the Spot Trading Rules page for the specific minimum and maximum order value and quantity requirements.
Can I redeem xStocks tokens on Bybit?
No. xStocks cannot be redeemed on Bybit. Bybit only serves as a secondary market where retail market participants can buy and sell xStocks.
Only professional and retail clients who are onboarded with Backed and have completed the KYC and AML process can redeem Backed tokens directly with Backed at Net Asset Value (NAV), subject to additional fees.
Can I trade xStocks tokens on Bybit Spot 24/7?
Yes. xStocks are available for trading 24/7 on the Bybit Spot market.
Can I deposit or withdraw xStocks tokens?
Yes. Deposits and withdrawals of xStocks are supported via the Solana (SOL) network. Please ensure that you withdraw your xStocks to a compatible on-chain wallet.
Do I receive dividends from xStocks?
No. Dividends are not currently distributed to token holders. However, we're actively exploring the possibility of enabling this in the future.
What are the differences between xStocks and TradFi on Bybit?
Bybit offers two distinct ways to gain exposure to stocks: xStocks on the Spot market and stock CFDs via Bybit TradFi Trading. While both allow users to track stock price movements, they're fundamentally different products with distinct features and use cases.
Does the xStocks token price always match the price of the underlying asset?
xStocks are designed to closely track the price of their underlying assets. In most cases, the token price will align with the underlying stock. However, under certain conditions, slight deviations may occur due to the following factors:
- Price source: The prices of the underlying equities are sourced from decentralized or third-party oracles. These sources may experience latency, minor discrepancies or operational delays, which can lead to variations in token pricing.
- Trading hours: xStocks are tradable 24/7, even when traditional stock markets are closed. As a result, price movements may not always align with those of the underlying assets during off-market hours.
- Issuer adjustments: Factors such as rebasing, inventory balancing by the issuer and corporate actions (e.g., dividends or stock splits) may affect the number of shares backing each token, which can impact the token's Net Asset Value (NAV).
What happens if stock splits, reverse splits, or dividend distributions cause the token ratio to deviate from 1:1 on xStocks?
Stock corporate actions such as stock splits, reverse splits, or dividend distributions may change the price and quantity of the underlying stock. However, these events will not change the number of tokens held by users.
To reflect these changes, we use a Multiplier mechanism. When such corporate actions occur, the Multiplier will be adjusted accordingly. This ensures the token’s economic value remains aligned with the underlying stock.
Users can view the following information on the trading page:
- Token/Stock price switch
- Current Multiplier
- Multiplier History with Event type and Effective date
Will my holdings be affected when the multiplier has been adjusted?
No, the number of tokens you hold will not change due to stock splits, reverse splits, or dividend distributions. However, the Multiplier may be adjusted, hence the share representation per token may change. These adjustments are designed to ensure the overall economic value of your holdings remains consistent with the underlying stock corporate action.
Note: Corporate actions may change the price and structure of the token, but they do not directly increase or decrease your token quantity.
How can I view the token Multiplier history?
You can view the Current Multiplier and Multiplier History directly from the xStocks trading page.
When on the website, please go to the xStocks trading page. Locate the Current Multiplier section above the trading Chart.
For Multiplier History click on Data above the Chart.
If you are using Bybit App, go to the xStocks trading page and locate the Current Multiplier section near the price information (above the chart).
For Multiplier History click on Data above the Chart.
Notes:
- Multiplier adjustments are only made when corporate actions occur. These adjustments ensure the economic value of the token remains aligned with the underlying stock.
- Multiplier changes do not affect the number of tokens held.
Is there any risk that xStocks could depeg from their underlying assets?
Yes. While xStocks are designed to closely track the price of real-world stocks, temporary price deviations (depegging) may occur under certain conditions:
- Low liquidity: If there is insufficient trading volume or liquidity for a specific xStock, the price may temporarily diverge from its real-world counterpart.
- Market disruptions or trading halts: If the underlying stock is halted or suspended on traditional exchanges, xStocks may still be traded. This can result in price discrepancies due to the absence of a reliable reference price.
- Custody or backing failure: If the token is asset-backed but the custodian or support mechanism fails to maintain the required reserves (e.g., due to technical, operational or legal issues), the peg may be compromised.
- Extreme market conditions: Black swan events, major geopolitical shocks or market crashes can lead to rapid price movements that challenge the peg's stability.
- Changes in product structure or pricing model: If the issuer adjusts how xStocks are priced or managed (e.g., temporary suspension or switch from full to partial backing), price tracking accuracy may be affected.
Does Bybit provide investment advice on xStocks?
No. Bybit does not provide investment advice, and none of the materials on our website or any of our communication with you should be interpreted as such. Please make sure to conduct your own research and understand the specific features of the xStocks product before trading.
Disclaimer:
xStocks are synthetic tokens designed to mirror the price of real-world equities. However, they do not represent actual ownership of the underlying stocks, and holding xStocks does not entitle you to any dividends, interest, voting rights, shareholder privileges, or rights offerings (including, but not limited to, share splits, spin-offs or subscription rights).
Trading xStocks involves risks, including potential price deviations from the underlying assets due to market conditions, liquidity, pricing mechanisms or issuer adjustments. These tokens are intended for speculative trading purposes only and may not always reflect real-time stock prices. Bybit does not guarantee the accuracy, timeliness, or continuity of price tracking.
Please conduct your own research and carefully assess your risk tolerance before trading xStocks. Past performance is not indicative of future results.
xStocks are not available in certain jurisdictions. Users are solely responsible for ensuring that their use of this product complies with applicable local laws and regulations.