Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the matter, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment, contrary to previous reports. Instead, Bybit is planning to enter the US market through a separate entity, which will be headed by former co-CEO Helen Liu, with a local partner providing the necessary licenses and compliance. Bybit will contribute its technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The companies are discussing potential 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, and by working together, Coinbase and Bybit can make these assets more accessible globally. This development comes as other market players are also exploring 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.