Coinbase and Bybit Collaborate on Tokenization, Custody, and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent 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 stake acquisition or similar arrangement for Bybit to enter the US, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, reportedly led by former co-CEO Helen Liu, which will focus on licensing, compliance, and technology. The partnership between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in regions like Asia, where users are interested in accessing tokenized US stocks. The collaboration aims to create synergies around asset custody and distribution, enabling global users to access US assets. The person noted that the US is home to desirable assets, and by working together, Coinbase and Bybit can bring these assets to a broader market. The exploration of tokenized stocks by the two companies comes as other market players are also pursuing similar partnerships, such as Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.