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 talks, which are ongoing, do not involve any stake acquisition or similar deal for Bybit to enter the US, as previously reported. Instead, Bybit plans to enter the US market through a separate entity, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides the technology, product, and liquidity. The collaboration between Bybit and Coinbase is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The companies are exploring synergies around custody and distribution of these assets, with the goal of bringing US assets to a wider market. The partnership is seen as a way to bridge the gap between the US and global markets, with the person noting that even if Coinbase becomes a leading app in the US, it would still be limited to the US market. The move comes as other market participants, such as Intercontinental Exchange and Deutsche Boerse, explore similar partnerships with crypto exchanges. Both Bybit and Coinbase declined to comment on the matter.