Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaging in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, safeguarding, and distributing assets such as US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a separate entity, reportedly 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 Coinbase and Bybit is focused on a global level, leveraging Bybit's extensive 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 areas of custody and distribution of these assets. The source emphasized that the US is home to certain assets that are in high demand globally, and by working together, Coinbase and Bybit can make these assets more accessible to a broader audience. The partnership is part of a larger trend, with other market players exploring similar collaborations, 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.