According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The discussions, which are ongoing, do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, contrary to previous reports. 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 provides the technology, product, and liquidity. The collaboration between Coinbase and Bybit is focused on a global scale, leveraging Bybit's international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks.
The companies are investigating potential synergies in 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 working together, Coinbase and Bybit can bring these assets to a broader market.
The partnership is part of a larger trend, with other market players 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.