Coinbase and Bybit Collaborate on Tokenization, Custody, and Distribution of US Stocks

According to a source familiar with the plans, cryptocurrency exchange Coinbase is partnering with Bybit, a leading crypto trading platform, to explore the tokenization, custody, and distribution of assets such as 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 is planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides the technology, product, and liquidity. The discussions between Bybit and Coinbase 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 goal of making any asset accessible to users globally through a single app within five years. This collaboration comes as other market participants, such as Intercontinental Exchange and Deutsche Boerse, explore similar partnerships with crypto exchanges.