According to a source familiar with the matter, Coinbase, a major cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing assets such as US public and pre-IPO stocks. The ongoing discussions do not involve any acquisition of stakes or similar arrangements for Bybit to enter the US market, as previously reported. Instead, Bybit plans to establish a new entity in the US, 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 extensive reach, 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 US is home to various assets that are in high demand globally, and by working together, Bybit and Coinbase can make these assets more accessible to a broader market. In the next five years, tokenization is expected to enable users to access any asset globally through a single app. Other market players are also exploring similar partnerships, 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.