Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

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 explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, currently ongoing, do not involve any acquisition of stakes or similar arrangements for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to enter 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 Coinbase and Bybit is focused on a global scale, leveraging Bybit's international presence, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The two companies are investigating potential synergies in the custody and distribution of these assets. The source noted that the US is home to assets that are in high demand globally, and by working together, Coinbase and Bybit can make these assets more accessible to a broader market. In the next five years, tokenization is expected to enable users to access any asset worldwide through a single app. The person emphasized 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 Bybit and Coinbase comes as other market players are also pursuing similar partnerships, 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.