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, which are ongoing, do not involve any stake acquisition or similar deal for Bybit to enter the US market, as previously reported. Instead, Bybit plans to establish a new entity in the US, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Bybit and Coinbase is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The partnership aims to capitalize on the demand for US assets globally, with the goal of making any asset accessible to users worldwide through a single app within the next five years. The development comes as other market players, such as Intercontinental Exchange and Deutsche Boerse, explore similar partnerships with crypto exchanges.