Bybit Launches Tokenized IPO Platform with SpaceX Offering as Elon Musk's Company Prepares $75 Billion Public Debut

Crypto exchange Bybit has launched IPO Express, a platform offering tokenized shares of IPOs at their offering price, starting with SpaceX's record-breaking $75 billion public debut. The service, powered by xStocks, aims to democratize access for retail investors but has limitations: holders get economic exposure without voting rights, and it excludes users from the European Economic Area.

Bybit IPO Express launch

• ▪Bybit's IPO Express platform is powered by the xStocks framework from Payward Services, Kraken's parent company
• ▪The first offering on Bybit's IPO Express is for tokenized shares of Elon Musk's SpaceX, with subscriptions open from June 7-11, 2026
• ▪Bybit, the world's second-largest crypto exchange by trading volume, has launched a new platform called IPO Express
• ▪The platform aims to give retail investors access to IPOs at the official offering price, a market previously dominated by institutional investors

SpaceX IPO oversubscription

• ▪Lead underwriters Goldman Sachs and Morgan Stanley have barred investors in mainland China and Hong Kong from the offering, citing U.S. regulations
• ▪An analyst at BNP Paribas warned the IPO could cause significant market volatility as investors sell other stocks to raise funds for SpaceX shares
• ▪SpaceX aims to raise at least $75 billion in its IPO on June 12, 2026, targeting a valuation of over $1.75 trillion
• ▪The IPO is reportedly oversubscribed, with around $150 billion in investor demand for the $75 billion worth of shares

Tokenized share structure limitations

• ▪Bybit's terms state that holders of its tokenized shares have no direct legal or beneficial ownership interest in the underlying company
• ▪Holders of the tokenized shares have economic exposure to the stock's price but do not receive voting rights, dividend rights, or direct ownership
• ▪Each tokenized share offered on Bybit is backed 1:1 by an underlying real share of SpaceX held in regulated custody

European Economic Area exclusion

• ▪The EEA exclusion is due to Bybit not holding the required license under the EU's Markets in Crypto-Assets Regulation (MiCA)
• ▪Bybit's IPO Express service is not available to users residing in the European Economic Area (EEA)

VIP tier eligibility requirements

• ▪Eligible users must also complete at least Level 1 Identity Verification or Business Verification
• ▪Participation in Bybit's IPO Express is restricted to users who have achieved "VIP or PRO tier status" on the platform

Competitive tokenized equity platforms

• ▪Other exchanges like Binance and Coinbase have offered pre-IPO exposure to SpaceX through synthetic derivatives, not equity-backed tokens
• ▪Kraken also offers tokenized IPO access through the same xStocks platform in over 110 markets