Coinbase, a prominent cryptocurrency exchange, is in discussions with Bybit, a leading global crypto trading platform, to explore the tokenization, custody, and distribution of U.S. public and pre-IPO stocks. This collaboration aims to enhance access to U.S. assets for a broader international audience, particularly in Asia.
According to a source familiar with the negotiations, these discussions do not involve any stake acquisition or plans for Bybit to enter the U.S. market, contradicting earlier reports of an investment partnership. The source, who requested anonymity due to their involvement in the talks, emphasized that Bybit’s partnership with an American firm is strategic, given the demand for U.S. assets from global users.
The source noted that the collaboration could facilitate the delivery of U.S. assets through a single application, projecting that within five years, tokenization will revolutionize asset accessibility worldwide. They stated, “Even if Coinbase becomes a super app in the U.S., they are still only in the U.S.” This highlights the potential for Bybit to leverage Coinbase’s U.S. focus while expanding its reach internationally.
This initiative aligns with a broader trend in the financial markets, where other major players are also exploring partnerships in the crypto space. For instance, the Intercontinental Exchange (ICE), which owns the New York Stock Exchange, recently announced a stake in the crypto exchange OKX. Similarly, Deutsche Boerse made headlines with a $200 million investment in Kraken.
While Bybit is looking to establish a U.S. presence, it is reportedly pursuing a local partner to assist with licensing and compliance, separate from Coinbase. The initiative is said to be led by former Bybit co-CEO Helen Liu, with Bybit providing the necessary technology, products, and liquidity for the venture.
Both Coinbase and Bybit have chosen not to comment on the ongoing discussions.
Coinbase and Bybit are collaborating to explore the tokenization of U.S. assets, aiming to expand access for international users. The talks do not involve a stake acquisition for Bybit to enter the U.S. market, and a local partner is being sought for compliance.