According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, currently in progress, do not involve a stake acquisition or a similar arrangement for Bybit to enter the US market, as previously reported.
Instead, Bybit is planning to enter 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 Bybit and Coinbase is focused on leveraging Bybit's global presence, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The companies are investigating synergies in custody and distribution, aiming to bring US assets to a broader market.
With the US being home to desirable assets for global users, the partnership between Bybit and Coinbase can facilitate access to these assets worldwide. The exploration of tokenized stocks by the two companies comes as other market players are establishing similar partnerships, such as Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.