Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

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, securing, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar deal for Bybit to enter the US market, contrary to previous reports. Instead, Bybit is planning to enter the US through a new entity, reportedly 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 leveraging Bybit's global reach, particularly in Asia, where users are interested in accessing tokenized US stocks. The two companies are exploring ways to work together on custody and distribution of these assets. The person stated that the US is home to assets that global users desire, and by working together, Bybit and Coinbase can bring US assets to a broader market. The partnership aims to make any asset accessible to users globally through a single app within five years. The explorations into tokenized stocks by Bybit and Coinbase come as other market players are also forming 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.