Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a major cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore tokenization, asset custody, and distribution of US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar deal for Bybit to enter the US market, contrary to previous reports. Instead, Bybit is planning to establish a new entity in the US, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Bybit and Coinbase is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The companies are exploring synergies in asset custody and distribution, aiming to bring US assets to a broader market. This development comes as other market players are also exploring 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.