Bybit Boosts Borrowing Power by Raising Collateral Ratios for Top Crypto Holdings

Bybit just made a tweak that could unlock a lot more cash flow for heavy crypto traders. The exchange announced an update to its Unified Trading Account (UTA) loan framework, bumping up the collateral value for large token positions. The bottom line? Big crypto holders can now borrow significantly more against the assets sitting in their accounts.

Big Positions Get Much More Leverage

Under Bybit’s tiered lending system, small and medium holdings get a standard base collateral ratio. Hold more than a certain amount, though, and the exchange drops the ratio on that excess balance to control risk. That penalty tier used to severely limit how much extra credit a mega-holder could pull.

Not anymore. The new policy hikes the collateral ratio on that upper tier to anywhere between 10% and 80%, depending on the coin. Base-tier ratios remain right where they were. System systems will recalculate everything automatically, meaning users do not need to click a button or tweak a setting to get the new rates.

A wide lineup of major tokens benefits from the change:

• Heavy hitters like Ethereum (ETH), Solana (SOL), and Binance Coin (BNB)
• Popular altcoins including XRP, Cardano (ADA), Chainlink (LINK), Litecoin (LTC), and Polkadot (DOT)
• High-volume meme tokens like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE)

Merging Tokenized Stocks with Crypto Collateral

This update builds directly on Bybit’s push last month to merge traditional finance with crypto trading. In July, the platform rolled out six tokenized equity assets (xStocks) into its lending and margin features:

• Tech giants like NVDAX, TSLAX, GOOGLX, and AAPLX
• Financial plays HOODX and CRCLX

Mixing tokenized equities with deep crypto reserves under one account umbrella changes the math for institutional players. Instead of keeping capital sidelined, traders can pledge a mix of tech shares and layer-1 tokens to back their active positions. Yoyee Wang, Bybit’s VP and Head of RWA, noted that the whole goal is helping institutional users stretch their balance sheets further without taking on extra friction.

Why Capital Efficiency Matters Now

Centralized exchanges are locked in a race to build all-in-one financial platforms. By unifying tokenized stocks, traditional crypto, margin trading, and direct loans into a single wallet, exchanges are removing the old clunky steps required to move liquidity between asset classes. Higher collateral recognition on large holdings lets desks put idle assets to work immediately, maximizing liquidity while lowering the drag of unpledged balances.

The updated ratios are already live and applying directly to qualifying UTA loan accounts across the platform.