According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The discussions, currently ongoing, do not involve a stake acquisition or a similar arrangement for Bybit to enter the US market, as previously reported.
Instead, Bybit plans 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, where users may be interested in accessing tokenized US stocks. The partnership aims to create synergies around custody and distribution of these assets.
The source noted that the US is home to assets that global users desire, and by working together, Bybit and Coinbase can bring these assets to a broader market. The exploration of tokenized stocks by the two companies comes as other market players are also pursuing 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.