Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

A source close to the matter has revealed that Coinbase, a leading cryptocurrency exchange, is engaged in discussions with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custodial services, and distribution of US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar arrangements for Bybit to enter the US market, as previously reported. Instead, Bybit plans to establish a new entity in the US, led by former co-CEO Helen Liu, with a local partner providing necessary licensing and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on a global scale, leveraging Bybit's international presence, particularly in Asia, where users may be interested in accessing tokenized US stocks. The companies are investigating potential synergies in custody and distribution of these assets. According to the source, the US is home to desirable assets that global users want access to, and the partnership between Bybit and Coinbase can facilitate the distribution of these assets to a broader market. The source believes that within five years, tokenization will enable users to access any asset globally through a single application. The exploration of tokenized stocks by Bybit and Coinbase comes as other market players are also pursuing similar collaborations, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.