Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a leading crypto exchange, is partnering with Bybit, a prominent crypto trading platform, to investigate ways to tokenize, custody, and distribute US public and pre-IPO stocks. The talks, which are ongoing, do not involve any stake acquisition or similar deal for Bybit to enter the US market, contrary to previous reports. Instead, Bybit is planning to enter the US through a separate entity, led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit provides the technology, product, and liquidity. The discussions between Bybit and Coinbase are focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The partnership aims to explore synergies around custody and distribution of these assets. The source noted that the US is home to desirable assets that global users want, and by working together, Bybit and Coinbase can bring these assets to a wider market. The collaboration is part of a larger trend, with other market participants exploring similar partnerships, such as Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.