According to a source familiar with the plans, cryptocurrency exchange Coinbase is engaged in discussions with Bybit, a prominent cryptocurrency trading platform, to explore opportunities for tokenizing, custoding, and distributing assets such as US public and pre-IPO stocks. The talks, which are ongoing, do not involve Bybit acquiring a stake in Coinbase or a similar arrangement 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 provides the necessary technology, products, and liquidity.
The collaboration between Coinbase and Bybit is focused on a global scale, leveraging Bybit's international presence, particularly in regions like Asia, where users are interested in accessing tokenized US stocks. The companies are exploring potential synergies in custody and distribution of these assets. The source noted that the US is home to desirable assets that global users want to access, and by working together, Coinbase and Bybit can bring these assets to a broader market.
In the next five years, tokenization is expected to make any asset accessible to users worldwide through a single app. The person emphasized that even if Coinbase becomes a dominant player in the US, its reach is still limited to the US market. This development comes as other market participants explore similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken.
Both Bybit and Coinbase declined to comment on the matter.