Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a major cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of assets such as US public and pre-IPO stocks. The ongoing talks do not involve Bybit acquiring a stake in Coinbase or a similar arrangement to enter the US market, contrary to previous reports. Bybit is planning to enter the US market through a new entity, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides the technology, products, and liquidity. The discussions between Coinbase and Bybit are focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The partnership aims to bring US assets to a wider global market, with the person stating that within five years, tokenization will enable users to access any asset globally through a single app. Other market participants, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar partnerships with crypto exchanges. Both Bybit and Coinbase declined to comment on the matter.