Coinbase and Bybit discuss investment partnership as Bybit seeks entry into the regulated U.S. crypto market, with valuation near $25B under discussion.
Coinbase is reportedly in talks with Bybit about a possible investment partnership. The discussions could help Bybit gain an entry into the regulated United States crypto market. Sources said the talks are still ongoing. However, there has been no final agreement. The prospective deal could prove to be one of the largest partnerships in the crypto industry.
Coinbase and Bybit discuss partnership to expand in regulated markets
Coinbase is the largest US based cryptocurrency exchange. Bybit is the second-largest offshore crypto exchange in terms of trading volume. Reports said the companies are discussing the idea of cooperation, including possible investment. However, the talks may also involve other types of partnerships.
Exclusive: Coinbase, the largest cryptocurrency exchange in the US, is in talks with Bybit, the world's second-largest offshore exchange, for an investment partnership. Bybit hopes to use this opportunity to enter the compliant US market. Three sources confirmed this news to… pic.twitter.com/SXBJnbDOQG
— Wu Blockchain (@WuBlockchain) March 14, 2026
People who are familiar with the matter said the objective is to help Bybit operate legally in the US. Due to the strict rules in the United States, foreign exchange students often have difficulties. Therefore, working with Coinbase could provide Bybit with a path that is compliant with the law. This would enable the company to cater to American users.
Related Reading: Coinbase CEO Discusses $100 Trillion Crypto Vision as XRPL Listing Date Nears – Ledger Tribune
Bybit refused to comment on the report when asked. Officials neither confirmed nor denied the discussions. However, a number of industry figures responded to the rumors on the Internet. Star Xu, the founder of OKX, said the deal could help the industry. He wrote that increased standards would eliminate regulatory arbitrage.
Regulatory arbitrage occurs when companies relocate to areas of weaker regulations. Because of this, some exchanges avoid strict markets such as the US. If the partnership occurs, it could motivate more companies to deal with stricter regulations. As a result, the industry may become more stable.
Possible $25B valuation shows rising competition among crypto exchanges
Market observers believe that the valuation of Bybit is near $25 billion. This estimate is based on deals in the industry in the past. In the past, Intercontinental Exchange invested in OKX at a similar value. Because of that deal, investors think that Bybit could receive the same valuation.
Reports have Coinbase potentially purchasing a large equity stake rather than outright acquisition. This means that Bybit would remain independent. However, Coinbase may still be helpful regarding compliance and access to the market. Such a structure would be risk-reducing for both companies.
The talks follow a number of major moves on the part of Coinbase. Last year, Coinbase paid $2.9 bn for Deribit. That deal helped the company develop into a trading company in derivatives. Therefore, another partnership would demonstrate that Coinbase is still growing.
Bybit has also been evolving its strategy in the past few years. The company is seeking to be a complete financial platform. This plan consists of trading, lending, and payment services. Because of this change, it became more significant to enter the US market.
Industry leaders say that cooperation between large exchanges could influence the future market. If the deal goes through, it is a possibility that it will add to the competition with other global platforms. However, for now, all that both companies were able to confirm were discussions, and the final decision is still unknown.