According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, currently in progress, 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, 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, where users are interested in accessing tokenized US stocks. The two companies are investigating synergies around custody and distribution of these assets. The person emphasized that the US is home to assets that global users desire, and by working together, Bybit and Coinbase can bring US assets to a broader market.
Within the next five years, tokenization is expected to make any asset accessible to users worldwide through a single app. The person noted that even if Coinbase becomes a leading app in the US, its reach is still limited to the US market. This development comes as other market players explore similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's investment in Kraken.
Both Bybit and Coinbase declined to comment on the matter.