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 engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing assets such as US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit plans to establish a new entity in the US, reportedly led by former co-CEO Helen Liu, with a local partner providing necessary licensing and compliance, while Bybit contributes its technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on a global level, leveraging Bybit's international presence, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The companies are investigating potential synergies in custody and distribution of these assets. The source noted that the US is home to desirable assets that global users want to access, and by working together, Coinbase and Bybit can bring these assets to a broader market. The exploration of tokenized stocks by the two companies comes amid similar initiatives by other market players, 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.