Bybit has listed three USDT-settled perpetual contracts tracking the share prices of BYD, Lenovo, and Hua Hong Semiconductor.

The crypto exchange announced BYDUSDT, LENOVOUSDT, and HUAHONGUSDT on September 7. Each supports up to 25x leverage, risk our guide on crypto leverage trading breaks down, and trades 24/7, including when the underlying stock exchanges are closed.

The contracts aren’t shares or tokenized shares. They’re synthetic derivatives settling gains and losses in USDT. Holding one provides no company ownership, dividends, voting rights, or shareholder benefits, and Bybit says the contracts aren’t sponsored, endorsed, or affiliated with the companies they track.

The Three New Listings, Side by Side

The three listings expand Bybit’s TradFi Perpetual product range beyond conventional cryptocurrency markets.

Table 1. Bybit’s New Asian-Stock TradFi Perpetuals

BYDUSDT and HUAHONGUSDT have a tick size of 0.01, LENOVOUSDT’s is 0.001. Bybit capped the funding rate at 2% for each, though parameters can change based on market conditions. The contracts work with Bybit’s Futures Grid, Martingale, and Combo trading bots, with availability subject to each user’s jurisdiction.

Why These Aren’t Tokenized Shares

A tokenized share represents an interest in an underlying security, though ownership structure depends on the issuer and legal arrangements. Bybit’s products don’t represent the shares themselves. According to the exchange’s TradFi Perpetual documentation, they are derivatives providing price exposure without transferring asset ownership.

A BYDUSDT position can move with BYD’s reference price without making the holder a shareholder. Holders don’t receive voting rights, dividends, distributions, subscription rights, or direct share ownership. USDT is the contracts’ denomination and settlement asset, not a tokenized representation of the stocks.

How the USDT Settlement Mechanism Works

A perpetual contract is a futures-style derivative without a fixed expiration, with a funding mechanism keeping its price aligned to the reference asset. Margin, profits, losses, and funding are calculated in USDT, with long and short positions exchanging payments every eight hours.

No expiration doesn’t mean a position can stay open indefinitely; it must keep meeting margin requirements, and a large adverse move can trigger liquidation. At 25x leverage, a small move against the position can consume a significant portion of posted margin, and funding payments can affect a position’s result over time even if the reference price barely moves.

The Risk of Trading When Underlying Markets Are Closed

BYD, Lenovo, and Hua Hong Semiconductor trade through traditional infrastructure with defined sessions, but Bybit’s contracts keep trading outside those hours, creating periods when new information can move the derivative’s price without an available reference from the underlying exchange.

Bybit says it may exclude stale components from its index and smooth transitions between open and closed periods, and limits the mark price to a defined range around the index price. These controls reduce extreme deviations but don’t eliminate market risk. 

Specific risks include price gaps after earnings or major news, lower liquidity while the underlying market is closed, wider bid-ask spreads, liquidation from leveraged exposure, jurisdictional restrictions, and pricing differences from the underlying shares.

How Corporate Actions Affect These Contracts

Stock splits, reverse splits, dividends, mergers, and suspensions can all affect a derivative tied to a company’s shares. Bybit says it may adjust a contract’s price, quantity, specifications, or outstanding positions to reflect such events, and may suspend or terminate a contract when necessary.

For splits, Bybit’s corporate-action procedure allows temporary suspension while parameters and positions are adjusted, with outstanding orders potentially cancelled. These are accounting adjustments, not new shares or shareholder benefits. 

Cash dividends can be reflected through pricing adjustments, but a holder doesn’t receive the dividend as a shareholder; final treatment depends on Bybit’s contract rules.

What Each Underlying Company Brings to the Table

The listings give Bybit users price exposure to three large Asian businesses. BYD is a Chinese electric-vehicle and battery manufacturer trading in Hong Kong, connecting the contract to EVs, energy storage, and China’s automotive market. Lenovo is a global computer and electronics manufacturer spanning PCs, servers, and enterprise technology. Hua Hong Semiconductor is a Chinese chip foundry, adding exposure to demand cycles and international technology restrictions.

That exposure remains indirect: Bybit is offering derivatives referencing share prices, not investment products issued by the companies themselves.

Questions the Next Few Weeks Should Answer

The immediate questions are whether the contracts attract enough activity to sustain liquidity and how closely prices track the underlying shares when markets are closed. Future corporate actions will test how clearly Bybit communicates adjustments, since traders will need to distinguish an economic change affecting shareholders from a change to the derivative’s specifications.

Further listings could reveal whether Bybit plans a broader range of contracts around Hong Kong-listed and mainland Chinese companies, though no schedule has been provided. Regulatory availability will remain a factor too, since derivatives rules vary between jurisdictions.

What this means for you: The new contracts provide USDT-settled exposure to BYD, Lenovo, and Hua Hong Semiconductor’s price movements, but not ownership of those companies. Their 24/7 availability and leverage can create additional funding, liquidity, pricing, and liquidation risks, particularly while the underlying stock markets are closed.

This is not financial advice. TradFi perpetuals are leveraged derivatives and do not represent ownership of stocks or tokenized securities. Availability depends on local regulations, and adverse price movements can result in the loss of the margin supporting a position.