Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing talks do not involve Bybit acquiring a stake in Coinbase or a similar arrangement to facilitate its entry into the US market, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, which will focus on providing licensing and compliance, while Bybit contributes its technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The two companies are exploring ways to work together on custody and distribution of these assets. The source noted that the US is home to assets that are in high demand globally, and by partnering, Coinbase and Bybit can make these assets more accessible to a broader market. The person predicted that within five years, tokenization will enable users to access any asset globally through a single app, highlighting the limitations of Coinbase's current US-focused approach. The exploration of tokenized stocks by Coinbase and Bybit 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.