According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore potential opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, currently ongoing, do not involve any stake acquisition or similar arrangements for Bybit to enter the US market, as previously reported.
Instead, Bybit plans to establish a new entity in the US, reportedly led by former co-CEO Helen Liu, which will focus on licensing, compliance, and providing technological expertise. The collaboration between Coinbase and Bybit is centered on leveraging Bybit's global reach, particularly in regions like Asia, where users are seeking access to tokenized US stocks.
The partnership aims to create synergies around custody and distribution of these assets. The source emphasized that the US is home to desirable assets for global users, and by working together, Coinbase and Bybit can bring these assets to a broader market. The exploration of tokenized stocks by the two companies comes as other market players are also pursuing similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.