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 opportunities for tokenizing, custoding, and distributing assets such as US public and pre-IPO stocks. The ongoing talks 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, spearheaded by former co-CEO Helen Liu, with a local partner providing licensing and compliance while Bybit provides the technology, product, and liquidity. The discussions between Bybit and Coinbase are focused on leveraging Bybit's global reach, particularly in Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are exploring synergies around custody and distribution of these assets. The US is home to certain assets that global users want, and by working together, Bybit and Coinbase can bring these assets to a wider market. The collaboration is part of a larger trend, with other market participants also exploring similar partnerships, such as Intercontinental Exchange's stake in crypto exchange OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.