Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

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 opportunities for tokenizing, securing, and distributing assets such as US public and pre-IPO stocks. The ongoing talks, however, do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a separate entity, reportedly led by former co-CEO Helen Liu, which will focus on licensing and compliance, while Bybit provides the necessary technology, products, and liquidity. The collaboration between Bybit and Coinbase is centered around leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are investigating potential synergies in custody and distribution of these assets. The source emphasized that the US is home to certain assets that are in high demand globally, and by working together, Bybit and Coinbase can make these assets more accessible to a broader market. The person noted that even if Coinbase becomes a dominant player in the US, its reach would still be limited to the US market, whereas Bybit's international presence could facilitate the global distribution of tokenized assets. This development comes as other market players are also exploring 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.