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 potential opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, which are ongoing, do not involve a stake acquisition or a similar deal for Bybit to enter the US market, contrary to previous reports. Instead, Bybit is planning to enter the US through a separate entity, which will be headed by former co-CEO Helen Liu and will focus on providing licensing and compliance, while Bybit will provide the necessary technology, products, and liquidity. The partnership between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in regions such as Asia, where users are interested in accessing tokenized versions of US stocks.
The two companies are exploring potential synergies in custody and distribution, with the goal of bringing US assets to a broader market. The source emphasized that the US is home to numerous assets that are in high demand globally, and that the partnership between Coinbase and Bybit can facilitate access to these assets for a wider audience. 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.