According to a source familiar with the matter, cryptocurrency exchange Coinbase is engaged in discussions with Bybit, a major crypto trading platform, to explore potential opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar deal that would enable Bybit to enter the US market, as previously reported. Instead, Bybit plans to establish a presence in the US through a separate entity, which will be led by former co-CEO Helen Liu and will focus on providing licensing and compliance, while Bybit provides the necessary technology, products, and liquidity.
The collaboration between Bybit and Coinbase is centered on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are exploring ways to work together on 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 partnering, Bybit and Coinbase can make these assets more accessible to a wider audience. This development comes as other market players are also exploring similar partnerships, such as Intercontinental Exchange's investment in crypto exchange OKX and Deutsche Boerse's strategic investment in Kraken.
Both Bybit and Coinbase declined to comment on the matter.