Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment deal for Bybit to enter the US, 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 focus on licensing, compliance, and technology. The partnership between Bybit and Coinbase aims to leverage Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The companies are exploring synergies in custody and distribution, with the goal of bringing US assets to a broader market. This collaboration is part of a larger trend, with other market players also exploring 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.