Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing assets such as US public and pre-IPO stocks. The ongoing talks, however, do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to enter the US through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides the technology, product, and liquidity. The discussions between Coinbase and Bybit are focused on leveraging Bybit's global presence, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The companies are investigating potential synergies in custody and distribution of these assets. The source emphasized that the US is home to certain assets that global users desire, and by collaborating, Coinbase and Bybit can bring these US assets to a broader market. The partnership aims to enable users to access any asset globally through a single app within the next five years. The exploration of tokenized stocks by Coinbase and Bybit comes as other market players are also pursuing similar collaborations, such as Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.