According to a source familiar with the plans, cryptocurrency exchange Coinbase is partnering with Bybit, a major crypto trading platform, to explore tokenization, custody, and distribution of assets such as US public and pre-IPO stocks. The talks, currently in progress, do not involve Bybit acquiring a stake in Coinbase or a similar deal to enter the US market, as previously reported.
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 technology, products, and liquidity. The partnership between Coinbase and Bybit is focused on a global scale, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The companies are exploring potential synergies in custody and distribution of these assets. The source noted that the US is home to certain assets that global users desire, and by working together, Coinbase and Bybit can bring these assets to a broader market.
The collaboration is part of a larger trend, with other market participants exploring 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.