Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a prominent crypto exchange, is engaged in talks with Bybit, a leading crypto trading platform, to investigate ways to tokenize, custody, and distribute US public and pre-IPO stocks. The ongoing discussions, however, do not involve any stake acquisition or similar arrangements for Bybit to enter the US market, as previously reported. Bybit is indeed planning to expand into the US, but 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 Bybit and Coinbase is focused on a global scale, leveraging Bybit's international presence, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. As such, the companies are exploring potential synergies in custody and distribution of these assets. The source noted that the US is home to certain assets that global users desire, and by working together, Bybit and Coinbase can bring these US assets to a broader market. The exploration of tokenized stocks by the two companies comes as other market players are also investigating similar partnerships, such as Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.