Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced a significant increase in collateral ratios for assets supported under its Unified Trading Account (UTA) Loans. The move is designed to expand borrowing capacity for users, with the greatest benefits going to those holding large single-asset positions in major cryptocurrencies. Affected assets include ETH, SOL, BNB, DOGE, XRP, ADA, LINK, LTC, TRX, SHIB, PEPE, and DOT.
The most impactful change removes the previous rule that set the collateral ratio to zero for holdings exceeding a certain threshold in the highest tier. Under the new framework, that top tier now carries a collateral ratio ranging from approximately 10% to 80%, depending on the asset. This effectively eliminates the ceiling on collateral value for supersized positions. Additionally, ratios for other upper position tiers have been raised across the board, slowing the rate at which collateral value declines as holdings grow.
The update applies automatically, requiring no action from users. “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,” said Yoyee Wang, Vice President of TradFi-RWA at Bybit. The exchange positions the change as part of its broader transformation into a full-service New Financial Platform, integrating digital assets with traditional financial instruments and real-world assets (RWAs).
