Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a major crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing assets such as US public and pre-IPO stocks. The ongoing discussions do not involve any stake acquisition or similar deal for Bybit to enter the US, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, which will be headed by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit provides the technology, product, and liquidity. The collaboration between Bybit and Coinbase is focused on a global scale, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The two companies are exploring ways to work together on custody and distribution of these assets. The person noted that the US is home to certain assets that are in high demand globally, and by working together, Bybit and Coinbase can bring these assets to a broader market. In the next five years, tokenization is expected to make any asset accessible to users worldwide through a single app. The person added that even if Coinbase becomes a leading app in the US, its reach is still limited to the US market. The exploration of tokenized stocks by Bybit and Coinbase comes as other market players are also forming similar partnerships. Recently, Intercontinental Exchange, the owner of the New York Stock Exchange, announced a stake in crypto exchange OKX, and Deutsche Boerse made a strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.