According to a source familiar with the discussions, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore ways to tokenize, custody, and distribute US public and pre-IPO stocks. The ongoing talks, however, 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, product, and liquidity. The collaboration between Bybit and Coinbase 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 around custody and distribution of these assets. The partnership aims to bring US assets to a broader market, with the goal of making any asset accessible to global users through a single app within the next five years. 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.