Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source close to the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, which are ongoing, do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit plans to establish a new entity in the US, 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 companies are investigating synergies in custody and distribution, aiming to bring US assets to a broader market. The partnership is driven by the growing demand for tokenization, which is expected to enable global access to any asset through a single app within the next five years. Other market players, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar collaborations with crypto exchanges.