Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the matter, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing talks, however, do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit plans to establish a new entity in the US, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in Asia, to provide users with access to tokenized US stocks. The companies are exploring synergies in custody and distribution, aiming to bring US assets to a broader market. This development comes as other market players, such as Intercontinental Exchange and Deutsche Boerse, also explore similar partnerships with crypto exchanges. Both Bybit and Coinbase declined to comment on the matter.