According to a source close to the matter, Coinbase, a leading cryptocurrency exchange, is engaged in discussions with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, which are ongoing, do not involve a stake acquisition or a similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to enter the US through a separate entity, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit handles the technology, product, and liquidity. The collaboration between Coinbase and Bybit is focused on a global level, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks.
The companies are investigating synergies around custody and distribution of these assets. The source noted that the US is home to certain assets that global users desire, and by working together, Coinbase and Bybit can bring these assets to a broader market.
The exploration of tokenized stocks by the two companies comes as other market players are also pursuing similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.