Reports indicate that Coinbase and Bybit are collaborating on the tokenization, safekeeping, and distribution of U.S. stocks.
These discussions do not include any equity acquisition or comparable arrangement for Bybit’s market entry, contradicting earlier claims from last month.
Key Points:
— Talks between Coinbase and Bybit center on the worldwide distribution and safekeeping of tokenized stocks and other financial instruments.
— Bybit’s strategy for U.S. market entry involves a new entity led by former co-CEO Helen Lui and an unnamed local partner, which is not Coinbase.
According to an anonymous source familiar with the matter, Coinbase (COIN) is collaborating with Bybit, a major cryptocurrency trading platform, to investigate methods for tokenizing, safeguarding, and distributing assets like U.S. publicly traded and pre-IPO stocks.
The ongoing negotiations do not involve any equity stake or similar deal for Bybit’s U.S. market entry, the source stated, refuting a report of an investment publicized last month.
The source explained that Bybit partnering with an American firm is logical, as the U.S. holds specific assets desired by global users. While Bybit operates internationally, Coinbase focuses on the U.S. market.
Through this collaboration, the two firms can introduce U.S. assets to a broader audience, such as in Asia, the source noted. Within five years, tokenization will enable global users to access any asset through a single application.
«Even if Coinbase evolves into a super app within the U.S., its reach remains limited to that region,» the source remarked.
These explorations into tokenized stocks by both companies align with similar moves by other industry players. In March, Intercontinental Exchange (ICE), which owns the New York Stock Exchange, announced a stake in crypto exchange OKX. Additionally, Deutsche Boerse recently made a $200 million strategic investment in Kraken.
While Bybit’s U.S. market entry does involve a local partner, it is not Coinbase, the source clarified.
The new U.S.-focused joint venture, reportedly led by former Bybit co-CEO Helen Liu, will include an unnamed «local partner responsible for licensing and compliance.» Bybit will contribute technology, product development, and liquidity.
Both Bybit and Coinbase declined to comment on the reports.