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, custoding, and distributing US public and pre-IPO stocks. The talks, which are ongoing, do not involve a stake acquisition or a similar deal for Bybit to enter the US market, as previously reported. Bybit is planning to enter the US, but through a separate partnership, which will involve creating a new entity led by former co-CEO Helen Liu, providing licensing and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Bybit and Coinbase is focused on a global scale, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The two companies are exploring ways to work together on custody and distribution of these assets. The US is home to certain assets that are in high demand globally, and by partnering, Bybit and Coinbase can bring these assets to a broader market. The person noted that within five years, tokenization will enable users to access any asset globally through a single app, highlighting the potential for growth and expansion. Even if Coinbase becomes a leading app in the US, its reach will still be limited to the US market. The exploration of tokenized stocks by Bybit and Coinbase comes as other market players are also pursuing similar partnerships, such as Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.