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, custodizing, and distributing assets such as US public and pre-IPO stocks. The ongoing talks do not involve any stake acquisition or similar deal for Bybit to enter the US market, as previously reported.
Instead, Bybit plans to establish a new entity in the US, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The companies are investigating synergies around custody and distribution of these assets.
The source emphasized that the US is home to desirable assets for global users, and by working together, Coinbase and Bybit can bring US assets to a broader market. The exploration of tokenized stocks by the two companies comes as other market players are also pursuing similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's investment in Kraken.
Both Bybit and Coinbase declined to comment on the matter.