A source close to the matter has revealed that Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore potential opportunities for tokenizing, custoding, and distributing assets such as US public and pre-IPO stocks. The talks, which are currently ongoing, do not involve any acquisition or investment deal for Bybit to gain entry into the US market, as previously reported. Instead, Bybit is planning to establish a presence in the US through a separate entity, which will be headed by former co-CEO Helen Liu, with a local partner providing necessary licensing and compliance, while Bybit contributes its technology, products, and liquidity.
The collaboration between Coinbase and Bybit is focused on a global level, leveraging Bybit's extensive reach, particularly in regions like Asia, where users may be interested in accessing tokenized versions of US stocks. As a result, the companies are investigating potential synergies related to the custody and distribution of these assets. According to the source, the US is home to certain assets that are in high demand globally, and by working together, Coinbase and Bybit can facilitate access to these assets for a broader market.
The source believes that within five years, tokenization will enable users to access any asset globally through a single application. The explorations into tokenized stocks by Bybit and Coinbase come at a time when other market players are also pursuing similar partnerships, such as the recent investments by Intercontinental Exchange in OKX and Deutsche Boerse in Kraken. Both Bybit and Coinbase have declined to comment on the matter.