Bybit Lists Tokenized U.S. Stock IPOs, Bypassing Wall Street
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Fazen Markets Editorial Desk
Collective editorial team · methodology
bybittokenized-stocks
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Bybit announced on 8 June 2026 that it will directly offer retail investors access to tokenized shares of U.S. company initial public offerings at official underwritten prices. The move directly challenges the exclusive pre-IPO allocations traditionally reserved for Wall Street investment banks and their largest institutional clients. Bybit’s global user base of over 30 million will be able to purchase these tokens, representing a significant new channel for IPO distribution.
Access to IPO shares at the initial offer price has historically been a privilege of the largest institutional investors like pension funds and mutual funds. Retail investors typically must wait for trading to begin on public exchanges, often buying at a premium after initial price surges. This structure has persisted for decades, reinforcing Wall Street’s role as a capital gatekeeper.
The current macro backdrop features sustained high interest rates, which have dampened traditional IPO activity and increased the appeal of alternative fundraising. Major stock indices like the SPX and NDX have traded in a tight range year-to-date, reflecting investor indecision. Simultaneously, regulatory clarity for digital assets has increased in several key jurisdictions, including the EU's MiCA framework enacted in 2024.
The immediate catalyst is the maturation of blockchain-based tokenization and the corresponding infrastructure for compliance. Custody solutions for tokenized securities have reached institutional-grade standards, as evidenced by BlackRock's BUIDL fund surpassing $12 billion in assets. This technological and regulatory foundation allows exchanges like Bybit to offer products that meet know-your-customer and anti-money laundering requirements at scale.
The first tokenized IPO offering on Bybit is for Cerebras Systems, an AI chipmaker. The underwritten IPO price is set at $48 per share. Bybit is offering a total allocation of 2 million tokenized shares exclusively to its users, representing a $96 million tranche of the total offering.
Cerebras's pre-IPO valuation is $18.5 billion. The company's previous private funding round in 2025 valued it at $13.2 billion, marking a 40% increase. The tokenized shares will be available for purchase on Bybit's platform starting 15 June 2026, two days before the stock's official debut on the Nasdaq on 17 June.
Bybit's standard trading fee for equity tokens is 0.1%, undercutting traditional online brokers where commissions can reach 0.5%. The exchange processed over $2.1 trillion in spot trading volume in 2025. In comparison, Robinhood Markets reported total equity trading volume of $1.8 trillion for the same year.
| Metric | Bybit Tokenized IPO | Traditional Retail Access |
|---|---|---|
| Access Timing | Pre-IPO at underwriter price | Post-IPO on public market |
| Typical Fee | 0.1% | 0.1% - 0.5% + potential spread |
| Initial Allocation | Dedicated tranche ($96M for Cerebras) | No guaranteed allocation |
The direct distribution model pressures the economics of traditional investment banking. Fees for underwriting IPOs average 5-7% of capital raised. A shift in allocation away from banks' favored clients could force downward pressure on these fees, directly impacting revenues for firms like Goldman Sachs and Morgan Stanley. The online brokerage sector faces disintermediation, as platforms like Robinhood and Interactive Brokers do not offer pre-IPO access.
Potential gainers include companies seeking to go public, particularly in the technology and crypto-native sectors. They could use this new channel to build a broader, more engaged retail shareholder base from day one. Alternative asset managers providing tokenization services, such as Securitize and ADDX, may see increased demand for their infrastructure.
A key risk is regulatory pushback from U.S. securities regulators. The SEC has previously challenged platforms offering tokenized securities to U.S. persons without proper registration. Bybit's service will likely be geofenced, excluding U.S.-based users initially. Another limitation is the initial scale; the $96 million Cerebras tranche is a fraction of the total multi-billion dollar IPO.
Positioning data shows hedge funds are increasing short exposure to traditional brokerage stocks. Flow tracking indicates capital moving into crypto exchange tokens, with Bybit's native exchange token seeing a 15% increase in weekly trading volume ahead of the announcement.
The performance of the Cerebras tokenized shares upon their public market debut on 17 June is the first critical test. A significant premium between the public opening price and Bybit's $48 offer price would validate the model's value proposition for retail investors.
Key regulatory milestones include the EU's DLT Pilot Regime review scheduled for Q3 2026 and potential guidance from the U.K.'s Financial Conduct Authority on tokenized securities. Any enforcement action by the SEC against non-U.S. platforms serving global customers would be a major catalyst for sector sentiment.
Market levels to monitor include the share prices of online brokers like Robinhood and Charles Schwab. A sustained break below their 200-day moving averages could signal investor concern over market share erosion. The total value locked in tokenized real-world asset protocols, currently at $55 billion, will serve as a barometer for the sector's growth trajectory.
Investors on the Bybit platform can purchase digital tokens that represent a direct claim on the underlying IPO shares. These tokens are purchased at the official underwritten price set by the investment bank, before the stock begins trading on a public exchange like the Nasdaq. Upon the public listing, the tokens automatically convert 1:1 to traditional shares held in a custodial account, or can be traded as digital securities on Bybit's secondary market. This process bypasses the need for a traditional brokerage account for IPO access.
Retail participation in IPOs was more common before the 1990s. The dot-com era saw some direct retail allocations, but the process was cumbersome. After the 2000 crash, investment banks consolidated control over IPO allocations to manage volatility and reward institutional clients. The 2012 JOBS Act aimed to increase retail access through crowdfunding, but limits on capital raises kept it niche for early-stage companies. Bybit's model is the first to offer direct, large-scale access to major, institutional-grade IPOs at the underwriter price.
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