According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, which are ongoing, do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, as previously reported.
Instead, Bybit plans to establish a new entity in the US, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, products, 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 companies are investigating potential synergies in 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. In the next five years, tokenization is expected to enable users to access any asset worldwide through a single app.
The person added that even if Coinbase becomes 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 as other market players are also pursuing similar partnerships. Recently, Intercontinental Exchange, the owner of the New York Stock Exchange, acquired a stake in crypto exchange OKX, and Deutsche Boerse made a strategic investment of $200 million in Kraken. Both Bybit and Coinbase declined to comment on the matter.