According to a source familiar with the plans, Coinbase, a leading cryptocurrency exchange, is partnering with Bybit, a prominent crypto trading platform, to explore the tokenization, custody, and distribution of US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment deal, contrary to previous reports. Instead, Bybit is planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, which will focus on licensing and compliance, while Bybit provides the necessary 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 partnership aims to bring US assets to a broader market, taking advantage of Coinbase's US focus and Bybit's international presence. The companies believe that tokenization will enable global users to access any asset through a single app within the next five years.
This development comes as other market players explore 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.