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 opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing discussions do not involve any stake acquisition or similar deal 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 focus on providing licensing and compliance, while Bybit provides the necessary technology, products, 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. The partnership aims to bring US assets to a wider global market, with the goal of making any asset accessible to users worldwide through a single app within the next five years. This development comes as other market players are also exploring similar partnerships, 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.