According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, currently in progress, do not involve a stake acquisition or a similar arrangement that would facilitate Bybit's entry into the US market, as previously reported. Instead, Bybit is reportedly planning to enter the US 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 regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are exploring ways to work together on custody and distribution of these assets. The source noted that the US is home to certain 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 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.