According to a source familiar with the matter, cryptocurrency exchange Coinbase is engaging in discussions with Bybit, a major crypto trading platform, to explore potential opportunities for tokenizing, custoding, and distributing US public and pre-IPO stocks. The talks, which are currently ongoing, do not involve any stake acquisition or similar arrangement for Bybit to enter the US market, as previously reported.
Instead, Bybit plans to establish a new entity in the US, led by former co-CEO Helen Liu, with a local partner providing licensing and compliance, while Bybit contributes technology, products, and liquidity. The collaboration between Bybit and Coinbase is focused on a global scale, leveraging Bybit's international presence, 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, Bybit and Coinbase can make these assets more accessible to a broader market. The exploration of tokenized stocks by the two companies comes as other market players are also pursuing 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.