Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, cryptocurrency exchange Coinbase is engaging in discussions with Bybit, a prominent 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, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides technology, products, and liquidity. The collaboration between Bybit and Coinbase 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 firms are exploring synergies around custody and distribution of these assets. The person noted that the US is home to certain assets that global users desire, and by working together, Bybit and Coinbase can bring these assets to a broader market. The companies' exploration of tokenized stocks comes as other market participants explore 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.