In a strategic collaboration, Coinbase (COIN) is reportedly working alongside Bybit, a prominent crypto trading platform, to delve into tokenizing and distributing assets like U.S. public and pre-IPO stocks, as revealed by an insider speaking to CoinDesk.
These discussions, which remain in progress, do not involve any stake acquisition or similar agreement for Bybit’s entry into the U.S., clarified the source who preferred anonymity due to their involvement, refuting a previous report of such an investment.
The source emphasized that partnering with a U.S.-based firm like Coinbase is logical for Bybit, as it aims to access U.S. assets desired by its global clientele. While Bybit operates internationally, Coinbase primarily focuses on the U.S.
The collaboration could enable them to extend U.S. assets into broader markets, including Asia, the source suggested. They projected that within five years, tokenization might allow any asset to be globally accessible through a single app. “Even if Coinbase evolves into a super app in the U.S., their reach is still limited to the U.S.”, the person noted.
Coinbase and Bybit’s exploration of tokenized stocks coincides with similar initiatives by other market players. In March, Intercontinental Exchange (ICE), owner of the New York Stock Exchange, took a stake in crypto exchange OKX. Recently, Deutsche Boerse invested $200 million into Kraken.
Bybit’s U.S. market strategy includes a local partner, but it isn’t Coinbase, according to the insider. The upcoming U.S.-focused venture, led by former Bybit co-CEO Helen Liu, will involve an unnamed “local partner providing license and compliance,” with Bybit contributing technology, products, and liquidity.
Both Bybit and Coinbase opted not to comment on these reports.
CORRECT (April 20, 14:03 UTC): Corrects spelling of Liu in second bullet point.