Why invest in xStocks Dual Asset?

Many investors already have a target price in mind before buying or selling a tokenized stock. xStocks Dual Asset lets you pursue yield while waiting for that price through a non-principal-protected structured yield product. This article explains why users choose it, the common use cases and what to consider before investing.

Key Takeaways:

• xStocks Dual Asset lets users pursue yield from their view on tokenized stocks through a structured product with fixed investment periods.

• Common use cases include earning yield while targeting a preferred buy price, earning yield while targeting a preferred sell price and building xStock exposure.

• Users should weigh the yield opportunity against settlement uncertainty, locked funds and the non-principal-protected nature of the product.

Why xStocks Dual Asset?

xStocks are tokenized stock products available on Bybit that provide blockchain-based exposure to selected publicly listed companies such as SpaceX and Nvidia. xStocks Dual Asset adds a structured yield path alongside Spot trading and other ways to access tokenized stocks on Bybit. It rewards users for having a directional view.You set a target price and earn yield during the investment period. In return, you accept that the final settlement asset depends on whether the settlement price reaches your target price. If the price hits your target, settlement occurs at that price. If it doesn't, you keep your original asset plus interest.Unlike crypto Dual Asset products, xStocks Dual Asset uses selected tokenized stocks as the underlying assets. This means price movement may be affected by equity-market drivers such as company news, earnings and broader market sentiment.

Why choose xStocks Dual Asset over simply holding xStocks?

The natural question is: why not just hold the xStock directly? Holding gives you full exposure but no yield. xStocks Dual Asset adds a yield component in exchange for settlement flexibility.

Neither option is universally better. The right choice depends on your goal and risk appetite.

Three common use cases

Earn yield while targeting a buy price (Buy Low)

You want to buy an xStock but think the current price is too high. You subscribe with USDT and set a lower target price via Buy Low.

• If the settlement price is at or below your target: the xStock is purchased at the target price using your subscription amount and interest income

• If the settlement price is above your target: you keep your USDT plus interest

Either way, you earn yield during the investment period. Think of it as getting paid to wait for your preferred entry price.Illustrative example: You set a Buy Low target of 140 USDT on NVDAX while it trades at 150 USDT. If NVDAX drops to 138 USDT, you buy at 140 using your subscription plus interest. If it stays above 140, you keep your USDT plus interest. This is for illustration only and does not represent actual returns.

Earn yield while targeting a sell price (Sell High)

You already hold an xStock and want to sell at a higher price. You subscribe with the xStock and set a higher target price via Sell High.

• If the settlement price is at or above your target: your xStock and interest are sold at the target price, and you receive USDT

• If the settlement price is below your target: you keep your xStock plus interest

You earn yield while waiting for the price to reach your exit target.Illustrative example: You hold NVDAX at 150 USDT and set a Sell High target of 160 USDT. If NVDAX rises to 165, your position is sold at 160 and you receive USDT. If it stays below 160, you keep your NVDAX plus interest. This is for illustration only and does not represent actual returns.

Build exposure to selected tokenized stocks

You're new to xStocks and want structured exposure. Buy Low lets you potentially acquire xStocks at a target price while earning yield during the period.This approach may suit users who already plan to buy an xStock but are willing to wait for a target entry price in exchange for earning yield during the investment period. However, you should be comfortable receiving either USDT or the selected xStock at settlement, depending on where the price lands.

Things to consider before investing

Before subscribing, weigh these factors:

• Non-principal-protected: the value of the settlement asset may be less than your initial investment

• Settlement is final: you can't choose which asset you receive at expiry

• No early redemption: funds are locked during the investment period, so you can't withdraw or reallocate even if market conditions change

• APR is not guaranteed profit: yield is earned, but total return depends on the settlement asset's value at expiry

• Tokenized stock structure: xStocks carry their own risks related to the issuer, liquidity and market tracking

These aren't reasons to avoid the product. They're factors to weigh against the yield opportunity based on your risk appetite.

The bottom line

xStocks Dual Asset suits users who have a view on tokenized stock prices and want to earn yield while acting on that view. The trade-off is settlement uncertainty: the final asset you receive depends on market movement rather than your preference. If that approach matches your investment goals and risk appetite, explore the latest xStocks Dual Asset products on Bybit Earn.



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