Cryptocurrency exchange Bybit is launching a retail banking product called MyBank in February, marking a significant expansion into traditional finance. The move relies on a partnership with licensed Georgian bank Pave Bank and highlights the complex regulatory hurdles crypto firms face when offering full banking services, including potentially stricter user verification processes.
Bybit is pushing into neobank-style services, testing how far crypto exchanges can expand into traditional finance. The exchange’s CEO, Ben Zhou, announced the planned February launch of its retail banking product, MyBank.
This ambitious move highlights regulatory challenges and a growing reliance on licensed banking partners. “The idea of a crypto exchange expanding into ‘banking’ is conceptually feasible, but in practice extremely complex from a regulatory perspective,” said blockchain lawyer Gal Arad Cohen.
To offer banking services, Bybit must partner with a licensed bank or obtain a full banking license. A Bybit spokesperson confirmed the exchange is working with Pave Bank, a licensed lender based in Georgia.
Pave Bank received a digital banking license from the National Bank of Georgia in 2023. In 2025, it raised $39 million in a funding round from major industry players including Tether Investments.
The scope of Bybit’s banking ambitions remains a key question for industry observers. Many exchanges have experimented with bank-like features, but operating as a bank is a substantially different undertaking.
“However, the closer a platform gets to offering full-service banking, the more it inherits banking burdens,” said lawyer Yuriy Brisov. He referred to capital requirements, sanctions enforcement, and operational resilience.
Bybit’s push reflects the broader crypto and traditional finance convergence. Petr Kozyakov, CEO of Mercuryo, said platforms in crypto are increasingly making inroads into traditional finance.
While the move could simplify fiat-to-crypto transactions, it may present trade-offs for retail users. Nick Denisenko, co-founder of Brighty, said it could introduce heavier Know Your Customer procedures.
“If Bybit goes down this route, it would be the first major exchange to seriously try it, and I’m not sure that’s what most retail users are asking for right now,” Denisenko stated.
