Bybit signals regulated institutional future with new licensing milestone

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In this post:

  • Bybit has secured a full UAE VAPO license and outlined its roadmap toward a regulated, institution-focused digital asset ecosystem.
  • The exchange unveiled an expanded institutional Credit Suite and ultra-low-latency execution architecture designed for professional market participants.
  • Bybit leadership signaled a unified future for TradFi and crypto, supported by custody-integrated credit, enhanced governance, and rapidly scaling liquidity.

Bybit announced its strategic roadmap at the Bybit Institutional Gala event in Dubai, showcasing several advancements in regulation, institutional credit infrastructure, and execution technology. Ben Zhou, Bybit Co-founder and CEO, delivered a keynote speech at the event, confirming that Bybit has received full authorization under the UAE’s VAPO framework.

According to Zhou, the approval positions Bybit as one of the industry’s most comprehensive supervisory structures, allowing the firm to offer a complete suite of institutional products from its UAE hub. Zhou said that the regulatory advancements achieved so far position the Dubai exchange to meet the increasing demand from institutions seeking oversight and operational stability.

Zhou says Bybit saw an increase in institutional activity in Q4

At the Bybit Institutional Gala event in Dubai, Ben Zhou, Bybit’s co-founder and CEO, revealed a rise in institutional activity across the exchange. He said that the exchange recorded an increase in asset inflows from approximately $1.3 billion in Q3 to $2.88 billion in Q4. Zhou added that the assets under management also expanded from $40 million in Q3 to $200 million in Q4, reflecting a trend towards platforms that can demonstrate scale, governance, and transparent operations.

Source: Bybit; Ben Zhou, Bybit co-founder and CEO, delivering a keynote speech

Bybit CEO outlined how its retail infrastructure supports institutional adoption through several offerings, including card, payment, and fiat integrations in 13 regions. According to Zhou, the retail infrastructure contributes to a deep liquidity pool for professional traders. He acknowledged that Bybit has expanded its partnerships with financial institutions across Europe and the Middle East to strengthen its role as an execution venue for institutional clients.

Ben Zhou described the  Virtual Asset Platform Operator (VAPO) license as the foundation for the exchange’s compliance-focused strategy as they head into 2026. He reiterated that the VAPO regulatory framework provides institutional clients with a clear environment for participation, as well as supporting Bybit’s custody development, increasing liquidity, and improving infrastructure services.

Wang reports major upgrades in Bybit’s INS Credit Suite and MMGW

Yoyee Wang, Head of Business to Business at Bybit, added on Ben Zhou’s remarks by delivering two major institutional upgrades to the exchange’s ecosystem. Wang revealed an expanded INS Credit Suite and a redesigned Market Maker Gateway (MMGW) execution layer.

According to Wang, the upgraded Credit Suite will offer up to 5X leverage, TradFi-aligned loan-to-value parameters, and support for up to 1,000 sub-accounts. Wang revealed that demand for the INS Credit Suite program continues to grow, highlighting that the exchange recorded $1.1 billion in INS loans in the fourth quarter. According to Wang, the exchange’s INS loan represented a 26% quarter-over-quarter increase.

The head of Business to Business at Bybit outlined that the key component of the recent upgrade is the integration of custody-based real-world asset tokens into Bybit’s off-exchange credit ecosystem. According to Wang, the integration enables institutions to hold assets in custody, earn returns through tokenized money-market RWAs, and unlock credit. Wang described the integration as a combination of custody, yield, and credit deployment into one operational workflow.

Bybit’s execution infrastructure, MMGW environment, was also redesigned to feature a reduced round-trip latency for institutional clients from 30 milliseconds to just 5 milliseconds. Wang also revealed that a 2.5 millisecond execution is underway, scheduled for release in 2026. She noted that the upgrades will improve consistency, stability, and predictability for market-making institutions. According to her, the credit and execution upgrades form part of the exchange’s plans to provide integrated institutional services combining custody, credit access, execution performance, and governance standards.

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