According to a source familiar with the matter, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore opportunities for tokenizing, custodying, and distributing US public and pre-IPO stocks. The talks are ongoing and do not involve Bybit acquiring a stake in Coinbase or any similar arrangement 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 Asia, to provide users with access to tokenized US stocks.
The companies are discussing synergies around custody and distribution of these assets. The partnership aims to bring US assets to a broader market, with the person noting that tokenization will enable global users to access any asset through a single app within five years.
Other market players, such as Intercontinental Exchange and Deutsche Boerse, are also exploring similar partnerships with crypto exchanges. Both Bybit and Coinbase declined to comment on the matter.