Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing talks do not involve Bybit acquiring a stake in Coinbase or a similar arrangement to enter the US market, contrary to previous reports. Instead, Bybit is planning to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, which will focus on licensing, compliance, and providing technological support. 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, enabling users worldwide to access US assets. The source believes that within five years, tokenization will enable users to access any asset globally through a single app, highlighting the potential for Coinbase and Bybit to bring US assets to a broader market. Other market participants, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar partnerships with crypto exchanges.