Crypto exchange Coinbase (COIN) is working with Bybit, one of the largest crypto trading platforms, to explore ways to tokenize, custody and distribute assets such as U.S. public and pre-IPO stocks, a person familiar with the plans told CoinDesk.
The talks, which are ongoing, do not involve any sort of stake acquisition or similar deal for Bybit to enter the United States, said the person, who asked to remain anonymous because they are directly involved in the discussions, dismissing 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 some assets sought after by global users. Bybit is international, while Coinbase is US-focused.
By working together, the two can bring U.S. assets to a broader market, such as Asia, according to the source. Within five years, tokenization will bring any asset to users around the world through a single application.
“Even if Coinbase becomes a super app in the U.S., it will still only be a super app in the U.S.,” the person said.
Both companies’ explorations into tokenized actions come as other market participants explore similar connections. Intercontinental Exchange (ICE), owner of the New York Stock Exchange, announced in March that it was taking a stake in crypto exchange OKX. Last week, Deutsche Boerse made a $200 million strategic investment 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, which would 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, products and liquidity.
Both Bybit and Coinbase declined to comment.
