Crypto exchange Coinbase (COIN) is working with Bybit, one of the largest crypto trading platforms, to explore ways to tokenize, store and distribute assets such as US public and pre-IPO stocks, a person familiar with the plans told CoinDesk.
The talks, which are underway, do not involve any kind of stock buyback or similar deal for Bybit to enter the U.S., said the person, who asked to remain anonymous because they are directly involved in the discussions and declined a report of an investment made public last month.
It makes sense for Bybit to partner with a U.S. company, the person said, because the U.S. is home to certain assets that global users want. Bybit is international, while Coinbase is US-focused.
By working together, the two could bring U.S. assets to a broader market in Asia, for example, 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 US, they’re still US only,” the person said.
The two companies’ exploration of tokenized stocks comes as other market participants explore similar connections. Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, announced in March that it would take a stake in the crypto exchange OKX. Last week, Deutsche Boerse made a strategic investment of $200 million in Kraken.
Bybit’s plan to enter the U.S. market involves a local partner, but it’s not Coinbase, the person said.
The new US-focused joint venture, said to be led by former Bybit co-CEO Helen Liu, will involve an unidentified “local partner who will provide licensing and compliance.” Bybit will provide technology, product and liquidity.
Bybit and Coinbase both declined to comment.
