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 prominent crypto trading platform, to explore tokenization, custody, and distribution of assets such as US public and pre-IPO stocks. The discussions, currently ongoing, do not involve any acquisition or investment deal for Bybit to enter the US market, contrary to reports published last month. Bybit is indeed planning to enter the US market, but through a separate entity led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides technology, products, and liquidity. The partnership between Bybit and Coinbase is focused on a global scale, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The companies are exploring synergies in custody and distribution of these assets. The person noted that the US is home to certain assets that global users desire, and by working together, Bybit and Coinbase can bring these assets to a broader market. In the next five years, tokenization is expected to make any asset accessible to users worldwide through a single app. The person stated, 'Even if Coinbase becomes a super app in the US, it will still only be in the US.' Other market players are also exploring 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.