Coinbase and Bybit Collaborate on Tokenizing and Distributing US Stocks

According to sources, Coinbase, a prominent cryptocurrency exchange, is joining forces with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The discussions, currently underway, do not involve Bybit acquiring a stake in Coinbase or a similar arrangement to facilitate its entry into the US market. Instead, Bybit is planning to enter the US through a separate entity, reportedly led by former co-CEO Helen Liu, which will focus on providing licensing and compliance, while Bybit contributes its technology, products, and liquidity. The partnership between Bybit and Coinbase is centered on a global strategy, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. As a result, the companies are investigating potential synergies in the custody and distribution of these assets. The person familiar with the plans noted that the US is home to desirable assets that global users want to access, and by working together, Bybit and Coinbase can bring these assets to a broader market. The collaboration between the two companies is part of a larger trend, with other market players 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.