Coinbase and Bybit Collaborate on Tokenization, Custody, and Distribution of US Stocks

According to a source familiar with the plans, cryptocurrency exchange Coinbase is joining forces with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, safeguarding, 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 market, as previously reported. Instead, Bybit is planning to launch 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 leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The companies are exploring synergies around custody and distribution of these assets. The partnership aims to bring US assets to a broader market, with the person noting that within five years, tokenization will enable global users to access any asset through a single app. Other market players are also exploring similar partnerships, such as Intercontinental Exchange's stake in crypto exchange OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.