Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is exploring potential collaborations with Bybit, a prominent crypto trading platform, to develop tokenization, custody, and distribution solutions for 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, contrary to previous reports. Instead, Bybit is planning to establish a presence in the US through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing necessary licensing and compliance, while Bybit contributes its technology, products, and liquidity. The discussions between Coinbase and Bybit are focused on a global scale, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The companies are investigating potential synergies in custody and distribution of these assets. The source emphasized that the US is home to desirable assets that global users want to access, and by working together, Coinbase and Bybit can bring these assets to a broader market. The collaboration is expected to enable the tokenization of any asset, making it accessible to users worldwide through a single app within the next five years. This development comes as other market players explore similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.