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 talks with Bybit, a prominent crypto trading platform, to explore potential collaborations on tokenizing, custoding, and distributing 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 is planning to enter the US through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing necessary licenses and compliance, while Bybit contributes its technology, products, and liquidity. The partnership between Coinbase and Bybit is centered around leveraging Bybit's global reach, particularly in regions like Asia, where users are interested in accessing tokenized versions of US stocks. The companies are investigating synergies in custody and distribution, aiming to bring US assets to a broader market. As the source noted, the US is home to desirable assets for global users, and the collaboration between Bybit and Coinbase could facilitate access to these assets worldwide. The exploration of tokenized stocks by the two companies follows similar initiatives by other market participants, 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.