Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, cryptocurrency exchange Coinbase is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The ongoing discussions do not involve a stake acquisition or a similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to launch a new entity in the US, led by former co-CEO Helen Liu, which will focus on compliance and licensing, while Bybit provides the necessary technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on a global scale, leveraging Bybit's international reach, particularly in Asia, where users are interested in accessing tokenized US stocks. The partnership aims to create synergies around custody and distribution of these assets. The source notes that the US is home to desirable assets that global users want to access, and the partnership between Bybit and Coinbase can bring these assets to a broader market. The companies' exploration of tokenized stocks comes as other market players are also forming 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.