Bybit's Regulated Collateral Bridge Unlocks $1B for TradFi-DeFi Fusion

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced a landmark partnership with QNB Group and DMZ Finance to integrate QCDT—a Dubai Financial Services Authority (DFSA)-approved tokenised money market fund—as collateral on its platform. This collaboration, disclosed on September 19, 2025, marks the first time a global crypto exchange has accepted a tokenised fund of this nature, bridging traditional finance (TradFi) and digital assets through regulated infrastructure. QCDT, managed by Qatar National Bank (QNB) and tokenised by DMZ Finance, is backed by U.S. Treasuries and custodied by Standard Chartered Bank, offering institutional-grade security and regulatory clarity within the Dubai International Financial Centre (DIFC) framework .

The integration of QCDT as collateral unlocks up to $1 billion in borrowing capacity for institutions, enabling them to deploy capital from traditional bank accounts into exchange-based yield strategies. For traditional financial institutions, the fund provides a low-risk, regulatory-compliant entry point into the crypto ecosystem, combining U.S. Treasury-backed yields with tokenised liquidity. This move is expected to attract billions in institutional liquidity currently held in banking systems, aligning with the UAE’s broader ambition to position itself as a global hub for digital asset markets .

Yoyee Wang, Head of Business-to-Business Unit at Bybit, emphasized the strategic importance of the collaboration: “Recognising QCDT as collateral opens the gateway for traditional financial institutions and established trading players to participate in the digital asset ecosystem with security, compliance, and efficiency. Our role as the bridge between traditional and digital finance has never been clearer” . Silas Lee, CEO of QNB Singapore, highlighted QCDT’s role in tokenising real-world assets (RWAs), stating that the initiative “empowers investors to seamlessly integrate high-quality, yield-bearing assets from traditional finance into the digital economy” .

The partnership leverages a vertically integrated infrastructure spanning custody, issuance, and fund management, with Standard Chartered Bank ensuring institutional-grade trust. QCDT’s approval by the DFSA underscores its compliance with regulatory standards, a critical factor for institutional adoption. The tokenised fund represents a functional bridge for DeFi, enabling institutions to access crypto markets without compromising their exposure to sovereign-backed assets. Analysts note that this model could catalyse further innovation in RWA-linked products, including QCDT-backed stablecoins and yield strategies .

Bybit’s adoption of QCDT strengthens its institutional strategy, building on its existing focus on compliance and scalability. The exchange’s platform now supports a regulated on-ramp for institutional capital, with over 25% of its trading volume already sourced from institutional clients. The move also aligns with the growing RWA market, which currently exceeds $30.2 billion in on-chain value and includes major players like BlackRock and Fidelity. As tokenisation gains traction, QCDT’s integration sets a precedent for future collaborations between TradFi and DeFi, particularly in jurisdictions prioritising regulatory clarity .