Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the matter, 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 talks, currently underway, do not involve any stake acquisition or similar deal for Bybit to enter the US market, as previously reported. Instead, Bybit plans to establish a new entity in the US, 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 Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The companies are exploring synergies in custody and distribution, aiming to bring US assets to a broader market. The person emphasized that the US is home to desirable assets for global users, and the partnership between Coinbase and Bybit can facilitate access to these assets. In the next five years, tokenization is expected to make any asset accessible to users worldwide through a single app. The person noted that even if Coinbase becomes a dominant player in the US, its reach is still limited to the US market. The exploration of tokenized stocks by Bybit and Coinbase 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.