Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is engaging in discussions with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, securing, and distributing US public and pre-IPO stocks. The ongoing talks do not involve a stake acquisition or a similar deal to facilitate Bybit's entry into the US market, as reported elsewhere last month. Instead, Bybit is planning to establish a presence in the US through a separate entity, reportedly led by former co-CEO Helen Liu, which will focus on compliance and licensing, while Bybit provides the necessary technology, products, and liquidity. The partnership between Bybit and Coinbase is focused on a global scale, leveraging Bybit's international presence, particularly in regions like Asia, where users are interested in accessing tokenized US stocks. The companies are investigating potential synergies in custody and distribution of these assets. The US is home to various assets that are in high demand globally, and by working together, Bybit and Coinbase can make these assets more accessible to a broader market. The collaboration between the two companies is part of a larger trend, with other market participants also exploring 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.