According to a source familiar with the matter, Coinbase, a leading cryptocurrency exchange, is in talks with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The discussions, which are ongoing, do not involve any plans for Bybit to acquire a stake in Coinbase or enter the US market through a similar deal. Instead, Bybit is reportedly planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, which will focus on providing licensing and compliance, while Bybit provides the necessary technology, products, and liquidity.
The partnership between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The companies are exploring ways to work together on custody and distribution of these assets, with the goal of bringing US assets to a wider global market.
The person familiar with the plans noted that the US is home to many assets that are in high demand globally, and that Bybit's international presence, combined with Coinbase's US focus, could create a powerful partnership. The development comes as other market players are also exploring similar partnerships, 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.