Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the discussions, Coinbase, a leading cryptocurrency exchange, is engaged in talks with Bybit, a prominent crypto trading platform, to explore potential collaborations in tokenizing, custoding, and distributing US public and pre-IPO stocks. The discussions, which are ongoing, do not involve any plans for Bybit to acquire a stake in Coinbase or enter the US market through an investment, contrary to previous reports. Instead, Bybit is reportedly planning to establish a new entity in the US, led by former co-CEO Helen Liu, which will focus on providing licensing and compliance, while Bybit will contribute its technology, products, and liquidity. The cooperation between Coinbase and Bybit is centered on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The two companies are exploring ways to work together on custody and distribution of these assets. The source noted that the US is home to many assets that are in high demand globally, and by collaborating, Coinbase and Bybit can bring these assets to a broader market. The development comes as other market players are also exploring 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.