Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in talks with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The discussions, which are ongoing, do not involve any plans for Bybit to acquire a stake in Coinbase or enter the US market through such a deal, as previously reported. Instead, Bybit is planning to enter the US market through a separate 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 Coinbase and Bybit is focused on a global scale, leveraging Bybit's international reach to provide users with access to tokenized US stocks, particularly in regions like Asia. The companies are investigating potential synergies in custody and distribution of these assets. The source emphasized that the US is home to desirable assets for global users, and by working together, Coinbase and Bybit can expand access to these assets worldwide. In the next five years, tokenization is expected to make any asset accessible globally through a single app. The person noted that even if Coinbase becomes a dominant player in the US, its reach would still be limited to the domestic market. The exploration of tokenized stocks by Coinbase and Bybit comes as other market players are also pursuing 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.