Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, currently in progress, do not involve any acquisition or investment deals, 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, with a local partner providing necessary licenses and compliance. Bybit and Coinbase are discussing ways to leverage their respective strengths, with Bybit's global reach and Coinbase's US focus, to bring US assets to a broader market. The goal is to enable global users to access tokenized US stocks, and the companies are investigating potential synergies in custody and distribution. This development is part of a larger trend, with other market players also exploring similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase have declined to comment on the matter.