According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks are ongoing and do not involve any acquisition or investment deals, contrary to previous reports. Bybit is planning to enter the US market through a new entity, which will be headed by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit will provide the technology, product, and liquidity. The collaboration between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks.
The companies are exploring ways to work together on custody and distribution of these assets. The goal is to bring US assets to a global market, with the person noting that within five years, tokenization will enable users to access any asset worldwide through a single app. 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.