Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to sources, Coinbase, a prominent cryptocurrency exchange, is engaging in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, which are currently underway, do not involve any acquisition of stakes or similar agreements 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 necessary technology, products, and liquidity. The discussions between Coinbase and Bybit are centered around leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The partnership aims to facilitate the distribution and custody of these assets worldwide, capitalizing on the demand for US assets among global users. As the person familiar with the plans noted, 'even if Coinbase becomes a super app in the US, they are still only in the US,' highlighting the potential benefits of the collaboration. The exploration of tokenized stocks by Coinbase and Bybit comes amid similar initiatives by other market participants, 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.