Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the discussions, Coinbase, a prominent cryptocurrency exchange, is exploring opportunities with Bybit, a leading crypto trading platform, to develop tokenization, custody, and distribution solutions for US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment deal for Bybit to enter the US market, as previously reported. Bybit is indeed planning to enter the US, but through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing compliance and licensing, while Bybit contributes technology, products, and liquidity. The discussions between Coinbase and Bybit are focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The partnership aims to create synergies around custody and distribution, enabling the firms to bring US assets to a broader market. The collaboration is driven by the growing demand for tokenization, which is expected to make any asset accessible globally through a single app within the next five years. As the market evolves, other players, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar partnerships with crypto exchanges like OKX and Kraken. Both Bybit and Coinbase declined to comment on the matter.