According to a source familiar with the plans, Coinbase, a prominent cryptocurrency exchange, is partnering with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The discussions, currently ongoing, do not entail any acquisition or investment, as previously reported. Instead, Bybit is planning to enter the US market through a separate entity, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance.
The collaboration between Bybit and Coinbase is focused on leveraging Bybit's global reach to provide users with access to tokenized US stocks, particularly in regions like Asia. The partnership aims to create synergies around custody and distribution, enabling the firms to bring US assets to a broader market. As the person noted, even if Coinbase becomes a dominant player in the US, its reach is still limited to the domestic market, whereas Bybit's international presence can facilitate the global distribution of US assets. The exploration of tokenized stocks by Bybit and Coinbase comes amidst similar initiatives by other market players, 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.