According to a source familiar with the matter, Coinbase, a major cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The discussions, which are ongoing, do not involve any stake acquisition or similar deal for Bybit to enter the US, as previously reported. Instead, Bybit is planning to enter the US market 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 Coinbase and Bybit 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, with the goal of bringing US assets to a wider global market. As the person noted, the US is home to certain assets that global users want, and by working together, Coinbase and Bybit can provide these assets to a broader audience.
The partnership is part of a larger trend, with other market participants also exploring similar collaborations, 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.