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 talks, currently in progress, do not involve any acquisition or investment deal, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, which will handle licensing and compliance, while Bybit provides the necessary 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 goal is to create a synergy between the two companies, enabling them to offer custody and distribution services for these assets worldwide. The partnership aims to bring US assets to a broader market, capitalizing on the growing demand for tokenization, which is expected to make any asset accessible globally through a single app within the next five years. The exploration of tokenized stocks by Coinbase and Bybit comes amid similar initiatives by other market players, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Coinbase and Bybit declined to comment on the matter.