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 engaged in discussions with Bybit, a prominent crypto trading platform, to explore potential opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks are ongoing and do not involve any acquisition of stakes or a similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to enter the US through a separate entity, led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit will provide the necessary technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on a global scale, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are exploring synergies in custody and distribution, aiming to bring US assets to a broader market. The source noted that the US is home to certain assets that are in high demand globally, and by working together, Coinbase and Bybit can provide users with access to these assets through a single app. This development comes as other market players are also exploring similar partnerships, such as Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.