Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, cryptocurrency exchange Coinbase is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment deal for Bybit's entry into the US market, contrary to previous reports. Bybit is planning to enter the US market through a new 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 discussions between Bybit and Coinbase focus on global collaboration, leveraging Bybit's international presence, particularly in Asia, where users are interested in accessing tokenized US stocks. The companies are exploring opportunities for custody and distribution of these assets. The partnership aims to bring US assets to a global market, with the potential for tokenization to make any asset accessible worldwide through a single app. Other market players are also exploring similar collaborations, 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.