According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaging in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, securing, and distributing assets such as US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a separate entity, led by former co-CEO Helen Liu, which will focus on compliance and licensing, while Bybit provides the necessary technology, products, and liquidity. The collaboration between Coinbase and Bybit is centered on a global strategy, leveraging Bybit's extensive international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks.
The two companies are investigating potential synergies in the areas of asset custody and distribution. The source noted that the US is home to various assets that are in high demand globally, and by working together, Coinbase and Bybit can make these assets more accessible to a broader audience. This development is part of a larger trend, with other market players also exploring similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.