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 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, reportedly led by former co-CEO Helen Liu, which will focus on licensing, compliance, and technology. The collaboration between Bybit and Coinbase is focused 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, capitalizing on the demand for these assets globally. The move is part of a larger trend, with other market players 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.