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 US public and pre-IPO stocks. The talks, currently in progress, do not involve any acquisition or investment, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, with a local partner providing necessary licensing and compliance. The partnership between Coinbase and Bybit is focused on a global scale, leveraging Bybit's international presence, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks.
The companies are investigating potential synergies in custody and distribution of these assets. The source noted that the US is home to assets that are in high demand globally, and the collaboration between Bybit and Coinbase could facilitate access to these assets for a broader market. The exploration of tokenized stocks by the two companies comes amidst similar initiatives by other market players, 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.