According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The talks are ongoing and do not involve any stake acquisition or similar deal for Bybit to enter the US market, contrary to previous reports. Bybit is indeed planning to enter the US market, but not through a deal with Coinbase.
Instead, the company will establish a new entity, reportedly led by former Bybit co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on a global level, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The companies are exploring synergies around custody and distribution of these assets.
The US is home to certain assets that are in high demand globally, and by working together, Bybit and Coinbase can bring these assets to a broader market. The person familiar with the plans believes that within five years, tokenization will enable global users to access any asset through a single app. Even if Coinbase becomes a leading app in the US, its reach will still be limited to the US market. The collaboration between Bybit and Coinbase on tokenized stocks comes as other market players explore similar partnerships, 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.