Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, cryptocurrency exchange Coinbase is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of assets such as US public and pre-IPO stocks. The talks are ongoing and do not involve any stake acquisition or similar deal for Bybit to enter the US, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on a global level, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are exploring synergies around custody and distribution of these assets. The goal is to bring US assets to a broader market, with the person suggesting that within five years, tokenization will enable global users to access any asset through a single app. Other market participants are also exploring similar partnerships, such as Intercontinental Exchange's stake in crypto exchange OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.