[Digital Today reporter Yoonseo Lee] Crypto exchange Bybit has launched a service that allows trading in more than 1,000 U.S. stocks and exchange-traded funds (ETFs) using the stablecoin USDC.

According to blockchain media outlet The Defiant on Oct. 12 (local time), the service adopts a brokerage-based structure for trading actual shares, unlike existing tokenised stock products. U.S. brokerage Alpaca will handle order execution and custody of the underlying shares.

Eligible users are those who meet requirements such as know-your-customer (KYC) checks in regions where the service is permitted. Supported names include Apple, Nvidia, Tesla, Micron and the Invesco QQQ ETF.

The key is the trading structure. Users can use USDC as funds to buy shares, but actual stock trades are settled in dollars. Bybit's product description says the settlement cycle is T+1, which settles on the next business day after the trade date. Users hold economic rights to the underlying shares and, depending on applicable terms, receive adjustments such as dividends and stock splits.

This differs from Bybit's existing tokenised stock product, xStocks. xStocks lets users invest in price moves through tokens backed by underlying stocks and ETFs. The new service, by contrast, trades actual shares through brokerage infrastructure. Both products allow access to the U.S. stock market, but the form of assets held and the rights structure differ for investors.

With the launch, Bybit now offers both tokenised products and brokerage services for actual shares, broadening investment choices. Users can manage crypto assets and stocks and ETFs on the same platform, while separate trading and settlement methods and usage conditions apply to each product.

The announcement also ties in with a trend of linking traditional financial products to on-chain users using stablecoins. Attention is focusing on how broadly Bybit will open the service to user groups and how it will operate it in parallel with xStocks.

The service is an example of using a stablecoin as purchase funds to broaden crypto users' access to traditional financial markets. Key points to watch are how much the service will expand by region and eligible users, and how it will be run alongside xStocks.