Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is exploring ways to collaborate with Bybit, a prominent crypto trading platform, to tokenize, custody, and distribute US public and pre-IPO stocks. The discussions, which are ongoing, do not involve any sort of acquisition or investment, contrary to previous reports. Bybit is reportedly planning to enter the US market, but not through a partnership with Coinbase. Instead, the company is expected to establish a new entity, led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit will contribute its technology, products, and liquidity. The partnership 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 companies are exploring opportunities for custody and distribution of these assets. The goal is to bring US assets to a broader market, and according to the source, tokenization will enable users to access any asset globally through a single app within the next five years. This development comes as other market participants, such as Intercontinental Exchange and Deutsche Boerse, explore similar partnerships with crypto exchanges. Both Bybit and Coinbase declined to comment on the matter.