Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, cryptocurrency exchange Coinbase is partnering with Bybit, a major crypto trading platform, to explore tokenization, custody, and distribution of assets such as US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar deal for Bybit to enter the US, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit provides the technology, product, and liquidity. The discussions between Bybit and Coinbase focus on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The partnership aims to bring US assets to a broader market, with the goal of making any asset accessible to users globally through a single app within five years. Other market participants, 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.