According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is working in tandem with Bybit, a leading crypto trading platform, to explore the possibility of tokenizing, custoding, and distributing assets such as US public and pre-IPO stocks. The discussions, which are currently ongoing, do not involve any form of stake acquisition or a 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, reportedly led by former co-CEO Helen Liu, with a local partner providing the necessary licensing and compliance.
Bybit will contribute its technological expertise, products, and liquidity to this new venture. The partnership between Bybit and Coinbase is focused on a global scale, leveraging Bybit's extensive reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. As a result, the two companies are investigating potential synergies in the areas of custody and distribution of these assets.
The US is home to a variety of assets that are in high demand globally, and by working together, Bybit and Coinbase can make these assets more accessible to a broader market. In the next five years, tokenization is expected to enable users to access any asset globally through a single app.
The exploration of tokenized stocks by Bybit and Coinbase comes at a time when other market players are also pursuing similar collaborations. Recent examples include Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Bybit and Coinbase have declined to comment on the matter.