According to a source familiar with the plans, cryptocurrency exchange Coinbase is partnering with Bybit, a major crypto trading platform, to explore tokenization, custody, and distribution of assets such as US public and pre-IPO stocks. The ongoing talks do not involve Bybit acquiring a stake in Coinbase or a similar arrangement to enter the US market, as previously reported. Bybit is indeed planning to enter the US market, but through a different partnership, which will involve creating a new entity led by former Bybit co-CEO Helen Liu.
This entity will provide licensing and compliance, while Bybit will provide the technology, products, and liquidity. The discussions between Bybit and Coinbase are focused on leveraging Bybit's global reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks.
The two companies are exploring potential synergies around custody and distribution of these assets. The source noted that the US is home to certain assets that are in high demand globally, and by working together, Bybit and Coinbase can bring these assets to a wider market. The collaboration between Bybit and Coinbase is part of a larger trend, with other market participants also exploring similar partnerships.
Recently, Intercontinental Exchange, the owner of the New York Stock Exchange, announced that it was taking a stake in crypto exchange OKX, while Deutsche Boerse made a strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.