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 opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar arrangement for Bybit to enter the US, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides the necessary technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The collaboration aims to create synergies around custody and distribution of these assets. The source notes that the US is home to certain assets that global users desire, and by working together, Bybit and Coinbase can bring these assets to a broader market. The partnership is part of a larger trend, with other market participants 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.