According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaging in discussions with Bybit, a leading crypto trading platform, to investigate methods for tokenizing, safeguarding, and distributing assets such as US public and pre-IPO stocks. These discussions are ongoing and do not involve any acquisition of stakes or similar arrangements 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 collaboration between Coinbase and Bybit is centered on a global scale, leveraging Bybit's extensive reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks.
As a result, the companies are exploring potential synergies in the areas of custody and distribution of these assets. The source emphasized that the US is home to certain assets that are in high demand globally, and by working together, Coinbase and Bybit can make these assets more accessible to a broader market. Within the next five years, tokenization is expected to enable users to access any asset globally through a single application.
The person noted that even if Coinbase becomes a dominant player in the US, its reach would still be limited to the US market. The exploration of tokenized stocks by Coinbase and Bybit comes as other market participants are also investigating similar partnerships. Recent examples include Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken.
Both Bybit and Coinbase declined to comment on the matter.