Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of assets, including US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment deal for Bybit to enter the US, contrary to previous reports. Bybit is indeed planning to enter the US market, but through a separate entity led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides technology, products, and liquidity. The discussions between Bybit and Coinbase focus on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The partnership aims to bring US assets to a broader market, with the goal of making any asset accessible globally through a single app within five years. This collaboration is part of a larger trend, with other market players 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.