Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a major cryptocurrency exchange, is engaged in discussions with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custodizing, and distributing US public and pre-IPO stocks. The talks are ongoing and do not involve any stake acquisition or similar deal for Bybit to enter the US market, contrary to previous reports. Bybit is indeed planning to enter the US market, but through a separate partnership, which will involve creating a new entity led by former co-CEO Helen Liu. The partnership will enable Bybit to provide technology, products, and liquidity, while the local partner will handle licensing and compliance. The discussions between Bybit and Coinbase are focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The collaboration aims to explore synergies around custody and distribution of these assets. The source noted that the US is home to certain assets that global users desire, and by working together, Bybit and Coinbase can bring these assets to a broader market. Within the next five years, tokenization is expected to make any asset accessible to users globally through a single app. The person emphasized that even if Coinbase becomes a leading app in the US, its reach will still be limited to the US market. The explorations into tokenized stocks by Bybit and Coinbase come as other market participants are also pursuing similar partnerships. Recently, Intercontinental Exchange, the owner of the New York Stock Exchange, announced a stake in crypto exchange OKX, and Deutsche Boerse made a strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.