Crypto exchange Coinbase Global (NASDAQ: $COIN) is reportedly working with Bybit on the tokenization, custody, and distribution of U.S. stocks.
Bybit, which is headquartered in the United Arab Emirates (UAE), is one of the largest pureplay crypto trading platforms.
Bybit is apparently partnering with Coinbase to also offer investors tokenized versions of pre-IPO stocks such as SpaceX.
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The arrangement with Coinbase comes as Bybit prepares to potentially enter the U.S. market later this year.
As for Coinbase, it is looking to leverage Bybit's global reach, particularly in Asia and the Middle East, as it expands its customer base with tokenized versions of stocks.
Analysts were quick to say that the partnership makes sense given that Bybit is international, while Coinbase is U.S.-focused.
Working together, the two trading platforms can likely bring U.S. assets to a wider global market, say analysts.
Tokenization is a hot new area of trading, with companies scrambling to give investors access to digital representations of current and future stocks.
Intercontinental Exchange (NYSE: $ICE), the owner of the New York Stock Exchange, recently announced it is taking a stake in crypto exchange OKX as it pushes forward with tokenization.
COIN stock has risen 20% in the last 12 months to trade at $209.31 U.S. per share.