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 US public and pre-IPO stocks. The ongoing talks do not involve Bybit acquiring a stake in Coinbase or a similar arrangement to enter the US market, as previously reported. Instead, Bybit plans to establish a new entity in the US, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes its technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on a global scale, leveraging Bybit's international presence, particularly in Asia, where users may be interested in accessing tokenized US stocks. The firms are investigating potential synergies in custody and distribution of these assets. The source noted that the US is home to assets that global users desire, and by working together, Coinbase and Bybit can bring US assets to a broader market. The partnership aims to enable users to access any asset globally through a single app within five years. Other market players, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar collaborations with crypto exchanges. Both Bybit and Coinbase declined to comment on the matter.