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 assets such as US public and pre-IPO stocks. The discussions, which are ongoing, do not involve a stake acquisition or a similar deal 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, which will focus on providing licensing and compliance, while Bybit provides the technology, product, and liquidity. The partnership between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in regions like Asia, where users are interested in accessing tokenized versions of US stocks. The two companies are exploring ways to work together to bring US assets to a broader market, with the goal of making any asset accessible to users globally through a single app within the next five years. This collaboration is part of a larger trend, with other market participants, such as Intercontinental Exchange and Deutsche Boerse, also exploring similar partnerships with crypto exchanges.