Coinbase and Bybit Collaborate on Tokenizing and Distributing US Stocks

According to a source familiar with the discussions, Coinbase, a prominent cryptocurrency exchange, is engaged in talks with Bybit, a leading crypto trading platform, to explore the potential of tokenizing, custoding, and distributing US public and pre-IPO stocks. The discussions, currently in progress, do not involve any acquisition or investment deals for Bybit to enter the US market, contrary to previous reports. Instead, Bybit is planning to establish a presence in the US through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing necessary licensing and compliance. Bybit will contribute its technology, products, and liquidity to this new venture. The collaboration between Coinbase and Bybit is focused on a global scale, leveraging Bybit's extensive international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The two companies are investigating opportunities for synergies in custody and distribution of these assets. The source emphasized that the US is home to many desirable assets for global users, and by working together, Bybit and Coinbase can bring these US assets to a broader market. The person noted that within five years, tokenization is expected to make any asset accessible to users worldwide through a single app, highlighting the limitations of being a US-focused platform. Even if Coinbase were to become a dominant app in the US, its reach would still be limited to the US market. This development comes as other market players are exploring similar partnerships, 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.