According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore potential avenues for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, which are ongoing, do not involve any acquisition of stakes or similar arrangements 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 necessary licenses and compliance, while Bybit contributes its technology, products, and liquidity. The collaboration between Bybit and Coinbase is focused on a global scale, leveraging Bybit's extensive international reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks.
The two companies are investigating potential synergies in the areas of 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 make these assets more accessible to a broader market. The person predicted that within five years, tokenization will enable users to access any asset globally through a single app, highlighting the limitations of Coinbase's current US-focused approach.
The explorations into tokenized stocks by Bybit and Coinbase come as other market players are also pursuing 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.