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, custodying, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Bybit and Coinbase is focused on a global scale, leveraging Bybit's international presence, particularly in Asia, where users are interested in accessing tokenized US stocks. The partnership aims to create synergies in custody and distribution, enabling global users to access US assets. The person noted that the US is home to desirable assets, and by working together, Bybit and Coinbase can bring these assets to a broader market. The exploration of tokenized stocks by the two companies comes as other market players are also forming similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.