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 engaging in discussions with Bybit, a leading crypto trading platform, to explore potential opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing necessary licensing and compliance. The partnership between Bybit and Coinbase is focused on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The companies are investigating ways to collaborate on custody and distribution of these assets. The source emphasized that the US is home to desirable assets that global users want to access, 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 amidst similar initiatives by other market participants, 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.