Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

A source close to the matter has revealed that Coinbase, a leading cryptocurrency exchange, is engaged in discussions with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, currently in progress, 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, led by former co-CEO Helen Liu, which will collaborate with a local partner to provide licensing and compliance, while Bybit contributes its technology, products, and liquidity. The collaboration between Bybit and Coinbase is focused on leveraging Bybit's global 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. According to the source, 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 widely available. The person noted that even if Coinbase were to become a dominant player in the US, its reach would still be limited to the US market. The exploration of tokenized stocks by Bybit and Coinbase comes amid similar initiatives by other market participants, 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.