Coinbase, Bybit said to be working together on tokenization, custody and distribution of U.S. stocks
The talks do not involve any sort of stake acquisition or similar deal to enter the U.S., as was reported elsewhere last month.
What to know:
- Discussions between Coinbase and Bybit focus on the global distribution and custody of tokenized stocks and other assets.
- Bybit’s plan to enter the U.S. market involves a new entity headed by former co-CEO Helen Lui and an unidentified local partner, which is not Coinbase.
It makes sense for Bybit to partner with an American company, the person said, because the U.S. is home to certain assets that global users want. Bybit is international, while Coinbase is U.S.-focused.
Working together, the two can bring U.S. assets to a wider market in, for example, Asia, according to the person. Within five years, tokenization will bring any asset to users globally through a single app.
“Even if Coinbase becomes a super app in the U.S., they are still only in the U.S,” the person said.
The two companies’ explorations into tokenized stocks come as other market participants explore similar link-ups. Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, in March announced it was taking a stake in crypto exchange OKX. Just last week, Deutsche Boerse, made a $200 million strategic investment into Kraken.
