Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, cryptocurrency exchange Coinbase is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custodying, and distributing assets such as US public and pre-IPO stocks. These talks, which are currently underway, do not involve Bybit acquiring a stake in Coinbase or a similar deal to enter the US market, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides the technology, product, and liquidity. The collaboration between Bybit and Coinbase is focused on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are exploring ways to work together on custody and distribution of these assets. The source noted that 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 wider market. The person added that within five years, tokenization will enable users to access any asset globally through a single app, highlighting the potential for Coinbase and Bybit to expand their offerings. 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.