According to a source familiar with the matter, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar deal for Bybit to enter the US, as previously reported.
Instead, Bybit plans to establish a new entity in the US, led by former co-CEO Helen Liu, which will focus on licensing and compliance, while Bybit provides the necessary technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The companies are discussing potential synergies around custody and distribution of these assets.
The partnership aims to bring US assets to a broader market, with the goal of making any asset accessible to users worldwide through a single app within the next five years. This development comes as other market players explore similar partnerships, 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.