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 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 are ongoing and do not involve any acquisition or investment for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a separate entity, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance. 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 create synergies around custody and distribution of these assets. The source noted that the US is home to desirable assets, and by working together, Coinbase and Bybit can make these assets more accessible to a global audience. The exploration of tokenized stocks by the two companies comes amid 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.