According to a source familiar with the matter, Coinbase, a leading cryptocurrency exchange, is engaged in discussions with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custodying, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment, as previously reported. Instead, Bybit plans to enter the US market through a separate entity, led by former co-CEO Helen Liu, which will focus on licensing, compliance, and technology.
The partnership between Coinbase and Bybit aims to leverage Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The collaboration is expected to enable the distribution of US assets to a broader market, with the potential to bring any asset to users worldwide through a single app within the next five years. Other market players, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar partnerships with crypto exchanges.