Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, securing, and distributing US public and pre-IPO stocks. The talks, which are ongoing, do not involve any stake acquisition or 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 Coinbase and Bybit is focused on a global scale, leveraging Bybit's international presence, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The companies are investigating synergies in asset custody and distribution, aiming to bring US assets to a broader market. The source notes that the US is home to desirable assets for global users, and the partnership between Coinbase and Bybit can facilitate access to these assets. In the next five years, tokenization is expected to make any asset accessible to users worldwide through a single app. The exploration of tokenized stocks by Coinbase and Bybit comes as other market players are also pursuing similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.