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 engaged in discussions with Bybit, a prominent crypto trading platform, to investigate ways to tokenize, custody, and distribute US public and pre-IPO stocks. The talks, which are ongoing, do not involve any acquisition or investment, contrary to previous reports. Instead, Bybit is planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, which will partner with a local firm to provide licensing and compliance. Bybit will contribute its technology, products, and liquidity to the venture. 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 partnership aims to explore synergies in custody and distribution, enabling the two companies to bring US assets to a broader market. The source emphasized that the US is home to desirable assets, and by working together, Coinbase and Bybit can provide global users with access to these assets through a single app. This development comes as other market players are 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.