According to a source familiar with the matter, cryptocurrency exchange Coinbase is partnering with Bybit, a major crypto trading platform, to explore opportunities for tokenizing, securing, and distributing US public and pre-IPO stocks. The talks are ongoing and do not involve any stake acquisition or similar deal for Bybit to enter the US market, as previously reported. Bybit is indeed 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 Bybit co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on a global level, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks.
The two companies are exploring potential synergies in securing and distributing these assets. The US is home to various assets that are in high demand globally, and by working together, Bybit and Coinbase can make these assets more accessible to a broader market. According to the source, within five years, tokenization will enable users to access any asset globally through a single app. Other market players are also exploring similar partnerships, such as Intercontinental Exchange's investment in crypto exchange OKX and Deutsche Boerse's strategic investment in Kraken.
Both Bybit and Coinbase declined to comment on the matter.