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 ongoing talks do not involve any stake acquisition or 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, with a local partner providing licensing and compliance, while Bybit contributes 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 partnership aims to create synergies around custody and distribution of these assets. The source noted that the US is home to desirable assets for global users, and the partnership between Coinbase and Bybit can bring these assets to a broader market. The exploration of tokenized stocks by the two companies comes as other market participants, such as Intercontinental Exchange and Deutsche Boerse, announce similar partnerships with crypto exchanges.