According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The discussions, currently in progress, do not entail a stake acquisition or a similar arrangement 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, with a local partner providing licensing and compliance, while Bybit contributes 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 may be interested in accessing tokenized US stocks.
The firms are investigating synergies in custody and distribution, aiming to bring US assets to a broader market. The person noted that the US is home to desirable assets for global users, and the partnership could facilitate access to these assets worldwide. The exploration of tokenized stocks by Bybit and Coinbase comes as other market players are also pursuing 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.