Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, 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 in progress, do not involve Bybit acquiring a stake in Coinbase or any other arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, which will be headed by former Bybit co-CEO Helen Liu and will focus on providing licensing and compliance, while Bybit will provide the necessary technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on leveraging Bybit's global reach, particularly in Asia, where users are interested in accessing tokenized versions of US stocks. The partnership aims to explore synergies around custody and distribution of these assets. The source noted that the US is home to certain assets that are in high demand globally, and by working together, Bybit and Coinbase can bring these assets to a wider market. The collaboration is part of a broader trend, with other market participants also exploring 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.