According to a source familiar with the plans, cryptocurrency exchange Coinbase is partnering with Bybit, a leading crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment deal for Bybit to enter the US, as previously reported. Instead, Bybit plans to establish a new entity in the US, headed by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit handles the technology, product, 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 two companies aim to create synergies around custody and distribution of these assets. The goal is to bring US assets to a wider market, with the person noting that tokenization will enable global access to 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.