According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaging in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, 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 Bybit and Coinbase 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 two companies are investigating synergies in custody and distribution of these assets. The goal is to provide global users with access to US assets through a single app, with tokenization expected to play a key role in this process over the next five years.
Other market players, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar partnerships with crypto exchanges. Both Bybit and Coinbase declined to comment on the matter.