Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

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 ongoing talks do not include a stake acquisition or a similar deal for Bybit to enter the US market, as previously reported. Instead, Bybit plans to establish a new entity in the US, led by former co-CEO Helen Liu, which will focus on licensing and compliance, while Bybit provides the necessary technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on a global level, leveraging Bybit's international reach, particularly in Asia, where users are interested in accessing tokenized US stocks. The two companies are investigating potential synergies in custody and distribution of these assets. The partnership aims to bring US assets to a broader market, with the person stating that within five years, tokenization will enable global access to any asset through a single app. Other market participants, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar collaborations with crypto exchanges. Both Bybit and Coinbase have declined to comment on the matter.