Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, Coinbase, a major cryptocurrency exchange, is exploring potential collaborations with Bybit, a prominent crypto trading platform, to develop ways to tokenize, store, and distribute 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 establish a presence in the US through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing necessary licenses and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Bybit and Coinbase focuses on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The two companies aim to explore synergies in custody and distribution of these assets. The source suggests that the US is home to desirable assets for global users, and by working together, Bybit and Coinbase can make US assets more widely available. This development is part of a broader trend, with other market players also exploring 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.