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 potential collaborations in tokenizing, custoding, and distributing US public and pre-IPO stocks. These talks, currently in progress, do not involve a stake acquisition or a similar deal for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to enter the US through a separate entity, reportedly led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit contributes technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on a global level, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are exploring synergies in custody and distribution of these assets. The source noted that the US is home to certain assets that are in high demand globally, and by working together, Bybit and Coinbase can bring these assets to a broader market. The collaboration between the two companies is part of a larger trend, with other market participants also 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.