Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to sources, Coinbase and Bybit are engaged in talks to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The discussions, which are ongoing, do not involve any plans for Bybit to acquire a stake in Coinbase or enter the US market through a similar deal, contrary to previous reports. Instead, Bybit is planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit provides the necessary technology, products, and liquidity. The partnership 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 ways to work together on custody and distribution of these assets. The goal is to bring US assets to a wider global market, with the person involved in the discussions stating that within five years, tokenization will enable users to access any asset globally through a single app. This development comes as other market participants, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar partnerships with crypto exchanges.