Bybit, the world's second-largest cryptocurrency exchange by trading volume, has increased Collateral Ratios across supported assets under its Unified Trading Account (UTA) Loans, enhancing capital efficiency and expanding borrowing capacity for traders holding sizable positions. The move comes as major exchanges increasingly compete on lending terms — including collateral recognition and borrowing flexibility — to attract and retain institutional and high-net-worth traders, for whom capital efficiency directly affects how much can be deployed across strategies.

The upgrade substantially increases the recognized collateral value at the upper end of Bybit's tier structure. Users holding major crypto assets — including ETH, SOL, BNB, DOGE, XRP, ADA, LINK, LTC, TRX, SHIB, PEPE, and DOT — as collateral will see greater borrowing capacity, with the most significant gains accruing to those with large single-asset positions.

The most impactful change applies to supersized holdings. Under the previous framework, once a single asset's holdings exceeded a defined threshold, the Collateral Ratio on excess holdings dropped to zero, effectively capping the collateral value a borrower could extract. Under the new structure, the top tier will carry a Collateral Ratio of approximately 10% to 80%, depending on the asset. This increase enables large single-asset holdings to retain meaningful collateral value, effectively removing the previous ceiling on potential borrowing capacity.

Collateral Ratios for other higher position tiers have also been raised across supported assets. The adjustment slows the rate at which collateral value tapers off as position sizes grow, allowing users with larger holdings to have a greater share of their assets recognized as effective 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 (official press page).

The RWA and TradFi integration theme referenced by Wang reflects a broader industry shift. In July, Bybit added six xStock assets as eligible collateral for Margin Trading, Crypto Loans, and Institutional Loans: NVDAX, HOODX, CRCLX, TSLAX, GOOGLX, and AAPLX. These additions advanced the integration of TradFi-linked assets into crypto-native infrastructure and enabled both retail and institutional traders holding xStock assets to improve their capital efficiency. Tokenized real-world assets have become one of the more actively pursued growth areas across the crypto sector, with multiple exchanges and protocols racing to bridge traditional and digital asset markets.

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