According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is engaged in discussions with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custodizing, and distributing US public and pre-IPO stocks. The talks, currently in progress, do not involve a stake acquisition or a similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in 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 its technology, products, 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 partnership aims to capitalize on synergies in custody and distribution, enabling the firms to bring US assets to a broader market. As the person noted, the US is home to desirable assets for global users, and by working together, Coinbase and Bybit can expand access to these assets worldwide. The exploration of tokenized stocks by the two companies comes amid similar initiatives by other market participants, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken.
Both Bybit and Coinbase declined to comment on the matter.