A source close to the matter has revealed that Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custodying, and distributing US public and pre-IPO stocks. The talks, which are ongoing, 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 contributes technology, products, and liquidity.
The collaboration between Bybit and Coinbase is focused on leveraging Bybit's global reach, particularly in Asia, where users may be interested in accessing tokenized US stocks. The two companies are investigating synergies around custody and distribution of these assets. According to the source, the US is home to assets that are in high demand globally, and the partnership between Bybit and Coinbase could facilitate access to these assets for a broader market.
The person noted that even if Coinbase becomes a dominant player in the US, its reach would still be limited to the US market. The exploration of tokenized stocks by Bybit and Coinbase comes as other market participants are also pursuing similar partnerships. Recent examples include Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.