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 US public and pre-IPO stocks. The talks, which are ongoing, do not involve Bybit acquiring a stake in Coinbase to enter the US market, as previously reported.
Instead, Bybit plans to enter the US through a separate entity, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes 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 partnership aims to create synergies around custody and distribution of these assets. The source emphasized that the US is home to assets that global users desire, and by working together, Coinbase and Bybit can bring these assets to a broader market.
The companies' exploration of tokenized stocks comes as other market players are also forming 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.