Coinbase and Bybit Collaborate on Tokenization, Custody, and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing assets such as US public and pre-IPO stocks. The ongoing talks do not involve Bybit acquiring a stake in Coinbase or a similar deal to enter the US market, as previously reported. 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 licensing and compliance, while Bybit provides technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are exploring synergies around custody and distribution of these assets. The source noted that the US is home to certain assets that global users desire, and by working together, Bybit and Coinbase can bring these assets to a broader 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.