According to a source familiar with the plans, 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 ongoing talks do not involve any acquisition or investment deal 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, led by former co-CEO Helen Liu, with a local partner providing necessary licenses and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Bybit and Coinbase is focused on a global scale, leveraging Bybit's extensive reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks.
The two companies are investigating potential synergies in custody and distribution of these assets. The source noted that the US is home to desirable assets sought by global users, and by working together, Bybit and Coinbase can make US 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 being US-focused, even for a super app. This development comes as other market players explore 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.