Bybit Increases Collateral Ratios Across UTA Loans, Expanding Borrowing Capacity for Traders

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, is raising Collateral Ratios across supported assets under Unified Trading Account (UTA) Loans. For traders holding sizable asset positions, the upgrade improves capital efficiency, substantially increasing recognized collateral value at the upper end of the tier structure and expanding borrowing capacity across the board.

Users holding major crypto assets such as ETH, SOL, BNB, DOGE, XRP, ADA, LINK, LTC, TRX, SHIB, PEPE, and DOT as collateral can expect increased borrowing capacity as a result of the change, with the largest gains for those holding significant single-asset positions.

The most significant change applies to supersized positions. Previously, once a single asset’s holdings exceeded a certain threshold, the Collateral Ratio of the excess holdings falls to zero, limiting the amount of collateral value a borrower can extract from their assets.

Under the new structure, this top tier will carry a Collateral Ratio of approximately 10% to 80% depending on the asset, a significant increase that allows large single-asset holdings to make the most of their holdings and effectively removing the ceiling of potential collateral value. The new framework unlocks significantly greater borrowing capacity for users with sizable positions.

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Collateral Ratios for other higher position tiers have also been raised across supported assets, slowing the rate at which collateral value tapers off as position size grows, so users with larger holdings will see more of their assets recognized as collateral.

“This update is especially meaningful for our institutional clients. With the increased Collateral Ratio, we’re enabling institutions to pledge more of their holdings as effective collateral and access greater borrowing capacity for trading. Customer-centric improvements to UTA Loans reflect Bybit’s broader transformation towards building a comprehensive, full-service New Financial Platform. Our goal is to support our clients in capturing all possible opportunities at the intersection of the digital asset class and mature global markets, including further integrations with traditional financial instruments and RWA, and expanding access to as well as the range of use cases of TradFi assets on Bybit, ” said Yoyee Wang, Vice President, TradFi-RWA, Bybit.

In July, six xStock assets were added as eligible collateral for Margin Trading, Crypto Loans and Institutional Loans on Bybit, including NVDAX, HOODX, CRCLX, TSLAX, GOOGLX, and AAPLX. The additions furthered the integration of TradFi-linked assets into crypto-native infrastructure and helped retail and institutional traders on Bybit who hold xStock assets boost capital efficiency.

Base-tier Collateral Ratios remain unchanged across all supported assets.  The system will automatically apply the updated Collateral Ratios when calculating collateral value, and no user action is required to access the benefits.