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 engaging in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, securing, and distributing assets such as US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment deal for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a new entity, reportedly led by former co-CEO Helen Liu, with a local partner providing regulatory compliance and licensing, while Bybit contributes its technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in regions like Asia, where users are interested in accessing tokenized versions of US stocks. The goal is to create synergies around the custody and distribution of these assets. The US is home to various assets that are in high demand globally, and by working together, Coinbase and Bybit can make these assets more accessible to a broader market. The person emphasized that within five years, tokenization will enable users to access any asset globally through a single application, highlighting the potential for growth and expansion. Other market players, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar partnerships with crypto exchanges, demonstrating the growing interest in tokenized assets.