According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore the potential for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, which are currently ongoing, do not involve any acquisition of stakes or similar arrangements for Bybit to enter the US market, as previously reported.
Instead, 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 necessary technology, products, and liquidity. The discussions between Coinbase and Bybit are focused on leveraging Bybit's global reach, particularly in regions such as Asia, where users may be interested in accessing tokenized versions of US stocks. The two companies are exploring opportunities for synergy in the areas of 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 provide US assets to a broader market.
The collaboration between the two companies is part of a larger trend, with other market participants also exploring similar partnerships, 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.