Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a major cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custodying, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar deal, contrary to previous reports. Bybit is planning to enter the US market, but not through a partnership with Coinbase. Instead, the company will establish a new entity, reportedly led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit provides the necessary technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The two companies are exploring potential synergies in custody and distribution of these assets. The partnership aims to bring US assets to a broader market, capitalizing on Bybit's international presence and Coinbase's US focus. The collaboration is part of a larger trend, with other market players exploring 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.