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 engaging in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, storing, and distributing assets such as US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or similar deal, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit will contribute technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on leveraging Bybit's global reach to provide users with access to tokenized US stocks, with the goal of bringing US assets to a broader market. This development comes as other market players are also exploring similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase have declined to comment on the matter.