According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is engaging in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custodying, and distributing assets such as US public and pre-IPO stocks. The ongoing talks do not involve any acquisition of stakes or similar agreements for Bybit to enter the US market, as previously reported.
Instead, Bybit is planning to enter the US through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, product, and liquidity. The collaboration between Bybit and Coinbase 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 exploring potential synergies in custody and distribution of these assets.
The source emphasized that the US is home to desirable assets for global users, and by working together, Bybit and Coinbase can bring US assets to a broader market. The person noted that within five years, tokenization will enable users to access any asset globally through a single app, highlighting the limitations of Coinbase's US-focused approach.
The exploration of tokenized stocks by Bybit and Coinbase comes amidst similar collaborations between other market participants, such as Intercontinental Exchange's stake in OKX and Deutsche Boerse's investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.