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 the tokenization, custody, and distribution of US public and pre-IPO stocks. The discussions, currently underway, do not involve a stake acquisition or a similar arrangement 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 Bybit and Coinbase is focused on leveraging Bybit's global reach, particularly in Asia, where users may be interested in accessing tokenized US stocks. The two companies are exploring synergies in custody and distribution, aiming to bring US assets to a broader market. The person noted that the US is home to desirable assets for global users, and by working together, Bybit and Coinbase can provide access to these assets worldwide. In the next five years, tokenization is expected to make any asset accessible to users globally through a single app. The partnership between Bybit and Coinbase is part of a larger trend, with other market participants exploring similar collaborations, such as Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.