According to a source familiar with the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, which are ongoing, do not involve a stake acquisition or a similar arrangement for Bybit to enter the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing licensing and compliance support, while Bybit contributes its 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 potential synergies in 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, Coinbase and Bybit can make these assets more accessible to a broader audience. The development of tokenization is expected to enable users to access any asset globally through a single app within the next five years.
Meanwhile, other market players are also exploring similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.