Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing 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 launch a new entity in the US, led by former co-CEO Helen Liu, which will focus on providing licensing and compliance, while Bybit handles the technology, product, and liquidity. The discussions between Coinbase and Bybit are centered around leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The partnership aims to create synergies around custody and distribution of these assets. The source emphasized that the US is home to many desirable assets, and by working together, Coinbase and Bybit can bring these assets to a broader market. The collaboration 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 investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.