According to a source familiar with the matter, 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 stake acquisition or similar agreement for Bybit to enter the US, as previously reported. Instead, Bybit plans to establish a new entity in the US, led by former co-CEO Helen Liu, which will focus on licensing and compliance, while Bybit provides the necessary technology, products, 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 are interested in accessing tokenized US stocks. The companies are investigating ways to work together on custody and distribution of these assets. The US is home to various assets that are in high demand globally, and by partnering, Coinbase and Bybit can bring these assets to a broader market. The person noted that even if Coinbase becomes a dominant player in the US, its reach is still limited to the US market.
This partnership comes as other market players are exploring similar collaborations, 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.