According to a source familiar with the plans, cryptocurrency exchange Coinbase is engaged in discussions with Bybit, a major crypto trading platform, to explore opportunities for tokenizing, custody, and distribution of 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, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, products, and liquidity.
The discussions between Bybit and Coinbase are focused on a global scale, leveraging Bybit's international presence, particularly in Asia, where users may be interested in accessing tokenized US stocks. The companies are exploring potential synergies in custody and distribution of these assets. The partnership aims to bring US assets to a broader market, with the person stating that within five years, tokenization will enable global users to access any asset through a single app.
Other market players are also exploring similar collaborations, 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.