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 major crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing discussions, however, do not involve any stake acquisition or similar deal for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a separate 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 collaboration between Bybit and Coinbase is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The two companies are exploring synergies in custody and distribution, aiming to bring US assets to a broader market. As the person noted, the US is home to desirable assets for global users, and the partnership between Bybit and Coinbase can facilitate access to these assets worldwide. The move is part of a larger trend, with other market players, such as Intercontinental Exchange and Deutsche Boerse, also exploring similar partnerships with crypto exchanges.