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 tokenization, custody, and distribution of US public and pre-IPO stocks. The talks, currently in progress, do not involve any stake acquisition or similar deal for Bybit to enter the US, 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, products, and liquidity. The collaboration between Bybit and Coinbase is focused on a global scale, leveraging Bybit's international reach to provide users with access to tokenized US stocks. The companies are exploring synergies in custody and distribution, aiming to bring US assets to a broader market. The partnership is expected to bridge the gap between US-focused Coinbase and internationally oriented Bybit, enabling users to access a wider range of assets. Other market players, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar collaborations with crypto exchanges. Both Bybit and Coinbase declined to comment on the matter.