According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The ongoing discussions, however, do not involve any stake acquisition or similar deal for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a new entity, reportedly led by former co-CEO Helen Liu, with a local partner providing necessary licensing and compliance.
Bybit will contribute its technology, products, and liquidity to the venture. 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 US stocks. The firms are investigating potential synergies in custody and distribution of these assets. The partnership aims to bring US assets to a broader market, capitalizing on Bybit's international presence and Coinbase's US focus.
The person believes that within five years, tokenization will enable global users to access any asset through a single app. Even if Coinbase becomes a dominant player in the US, its reach would still be limited to the domestic market.
The exploration of tokenized stocks by Bybit and Coinbase comes as other market players are also pursuing similar partnerships. Recent examples include Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.