Bybit Launches Fiat Banking Services Amid Global Crypto Fear

VADODARA, January 29, 2026 — Bybit confirms a strategic expansion into traditional banking services. The exchange plans to launch fiat currency accounts with International Bank Account Numbers (IBAN). This move directly challenges legacy financial infrastructure. According to Bloomberg's report, CEO Ben Zhou announced the initiative. The service targets a February launch pending regulatory approval.

Investigation: Bybit's Banking Infrastructure Rollout

Bybit partners with Fave Bank in Georgia for its initial banking foray. The accounts will support transfers in 18 fiat currencies. This creates a seamless fiat-to-crypto gateway. The company simultaneously prepares a custody product for real-world asset (RWA) tokenization. This product specifically targets institutional investors. , Bybit explores U.S. collaborations with licensed partners. Discussions with major banks about a potential U.S. stock listing continue as a long-term goal. The official announcement details the phased regulatory approach.

Market Context & Historical Precedent

Historically, crypto-native firms expanding into banking signals maturation. Coinbase's 2021 public listing established a precedent. In contrast, Bybit's IBAN integration represents a deeper structural incursion. This mirrors Kraken's 2023 banking charter application. Underlying this trend is a clear institutional demand for regulated fiat rails. The move occurs amid a global Crypto Fear & Greed Index reading of 26/100. This fear-dominated environment often precedes major liquidity shifts. Related developments highlight this institutional accumulation phase. For instance, Sygnum's Bitcoin fund attracted 750 BTC recently. Similarly, XRP saw 11.5% smart money accumulation despite price pressure.

Technical Architecture & Price Action

Market structure suggests Bitcoin faces a critical liquidity test at $88,158. The 24-hour decline of 1.06% reflects broader risk-off sentiment. Technical analysis reveals a key Fibonacci 0.618 retracement level at $85,000. This level aligns with a high-volume node on the Volume Profile. A break below this cluster would invalidate the current bullish higher-timeframe structure. The Relative Strength Index (RSI) on daily charts hovers near 45. This indicates neutral momentum with a bearish bias. The 50-day moving average at $90,200 acts as immediate resistance. This creates a clear $85,000–$90,200 consolidation range. According to Ethereum's official documentation on account abstraction, seamless fiat integration like Bybit's could accelerate Layer 2 adoption for RWAs.

By The Numbers

Why It Matters

Bybit's banking service dismantles a major friction point. Institutional investors require direct fiat custody. The IBAN system provides this within a regulated framework. Consequently, capital deployment into crypto assets becomes faster. This particularly benefits the real-world asset tokenization sector. The planned RWA custody product creates a complete vertical integration. Institutions can now onboard fiat, tokenize assets, and custody them on one platform. This structural shift mirrors traditional finance's prime brokerage model. It signals crypto's evolution from speculative trading to asset management infrastructure.

Expert Commentary

Market structure suggests Bybit is executing a classic liquidity grab. They are building fiat rails during a fear-dominated market cycle. This positions them to capture institutional flow when sentiment reverses. The RWA custody product is the key multiplier. It turns fiat deposits into tokenized assets on-chain. This could trigger a significant gamma squeeze in select RWA tokens as institutional portfolios rebalance.

— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two primary technical scenarios emerge from current data.

• Bullish Invalidation Level: A sustained break above $92,000 would confirm a trend reversal. This level represents the weekly order block high from early January. It would signal institutional accumulation overcoming fear sentiment.
• Bearish Invalidation Level: The $85,000 Fibonacci support must hold. A daily close below this level would invalidate the current consolidation structure. It would likely trigger a liquidation cascade toward the next volume gap at $82,000.

The 12-month institutional outlook hinges on regulatory approval. Successful launch in February creates a new fiat on-ramp. This accelerates RWA tokenization throughout 2026. Over a 5-year horizon, such integrations could shift trillions in traditional assets onto blockchain rails. Federal Reserve policies on digital dollar development will be a critical co-factor.