According to a source familiar with the plans, 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, as previously reported. Instead, Bybit plans to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit provides the technology, products, and liquidity.
The discussions between Coinbase and Bybit are focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The partnership aims to bring US assets to a wider market, with the potential for tokenization to make any asset accessible globally through a single app within the next five years. This collaboration comes as other market participants explore similar partnerships, 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.