Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

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 opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks are ongoing and do not involve Bybit acquiring a stake in Coinbase or a similar arrangement 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 Coinbase and Bybit is focused on a global scale, utilizing Bybit's international reach to provide users in regions like Asia with access to tokenized US stocks. The companies are investigating synergies in custody and distribution, aiming to bring US assets to a broader market. The person notes that the US is home to desirable assets for global users, and the partnership between Bybit and Coinbase can facilitate access to these assets. In the next five years, tokenization is expected to make any asset accessible to users worldwide through a single app. The person emphasizes that even if Coinbase becomes a dominant 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 pursuing similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.