Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The discussions, currently in progress, do not involve any acquisition or investment deal, contrary to previous reports. Bybit is planning to enter the US market 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 to provide users with access to tokenized US stocks, particularly in regions like Asia. The partnership aims to bring US assets to a broader market, capitalizing on Bybit's international presence and Coinbase's US focus. The companies' exploration of tokenized stocks follows similar initiatives by other market players, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.