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 prominent crypto trading platform, to investigate ways to tokenize, custody, and distribute assets such as US public and pre-IPO stocks. The talks are ongoing and do not involve any acquisition or investment, contrary to previous reports. Bybit is planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, which will provide licensing and compliance, while Bybit will provide the technology, product, and liquidity. The collaboration between Bybit and Coinbase is focused on leveraging Bybit's global reach to provide users with access to tokenized US stocks. The companies are exploring synergies around custody and distribution of these assets, with the goal of bringing US assets to a wider market. This partnership is part of a larger trend of market participants exploring similar collaborations, 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.