Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custodying, and distributing US public and pre-IPO stocks. The talks, which are ongoing, do not involve any plans for Bybit to acquire a stake in Coinbase or vice versa, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, which will be headed 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 leveraging Bybit's global reach, particularly in regions like Asia, where users are interested in accessing tokenized US stocks. The two companies are exploring ways to work together on custody and distribution of these assets. The source noted that the US is home to many assets that global users want access to, and by working together, Coinbase and Bybit can bring these assets to a broader market. The partnership is part of a larger trend, with other market players also exploring similar collaborations, 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.