Bybit Raises UTA Loan Collateral Ratios to Boost Borrowing Capacity

Bybit has announced higher collateral ratios for assets supported under its Unified Trading Account (UTA) Loans, a move designed to increase borrowing capacity for users, particularly those holding large cryptocurrency positions.

The update applies to a range of supported assets, including ETH, SOL, BNB, DOGE, XRP, ADA, LINK, LTC, TRX, SHIB, PEPE and DOT. 

By increasing the proportion of these holdings that can be recognized as collateral, the exchange aims to improve capital efficiency for traders using UTA Loans.

Higher recognition for large holdings

The most notable change affects users with substantial single-asset positions.

Previously, once holdings exceeded a specified threshold, any additional assets in the highest collateral tier received a collateral ratio of zero, meaning the excess balance no longer contributed to borrowing capacity.

Under the revised framework, assets in the top tier will now receive collateral ratios ranging from around 10% to 80%, depending on the cryptocurrency. As a result, large positions will continue to contribute collateral value instead of becoming ineligible beyond a certain limit.

Bybit has also increased collateral ratios across other upper position tiers, reducing the pace at which collateral value declines as holdings grow. The company says this allows users with larger portfolios to utilize a greater share of their assets when borrowing.

According to Bybit, the changes are intended to improve capital efficiency for both retail and institutional traders, with the latter expected to benefit most from the higher recognition of large asset holdings.

Yoyee Wang, Vice President of TradFi-RWA at Bybit, said the revised collateral framework enables institutional clients to pledge a larger portion of their crypto assets, increasing borrowing capacity for trading and investment activities.

The update forms part of Bybit's broader strategy to expand its financial services offering beyond traditional crypto trading. 

The exchange said it continues to develop products that bridge digital assets with traditional financial markets, including real-world assets (RWAs) and other conventional financial instruments, as it positions itself as a broader financial platform.