Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The ongoing discussions do not involve any stake acquisition or similar deal 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, which will be led by former co-CEO Helen Liu and will leverage a local partner for licensing and compliance. The collaboration between Coinbase and Bybit is focused on a global scale, utilizing Bybit's international reach to provide users with access to tokenized US stocks. The companies are investigating synergies in custody and distribution, aiming to bring US assets to a broader market. The person noted that the US is home to desirable assets for global users, and by working together, Coinbase and Bybit can expand access to these assets. The partnership is part of a broader trend, with other market players exploring similar collaborations, 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.