A major shake-up could be brewing in crypto exchange land. Coinbase is reportedly holding strategic alliance talks with offshore trading platform Bybit, with Coinbase considering taking a stake as a strategic investor. If the deal goes through, Bybit would gain a compliant channel to serve US customers — something it currently cannot do directly due to regulatory barriers.
Coinbase’s Play: Global Liquidity & Derivatives Push
Coinbase has been on an expansion spree. In 2025 it bought derivatives exchange Deribit for nearly $2.9 billion, grabbed a seat in the S&P 500 index, and announced plans to launch commission-free stock trading in the US by 2026. A tie-up with Bybit would let Coinbase bridge its regulated platform with deep offshore liquidity, boosting both spot and derivatives trading volumes on a global scale.
Bybit handles the second-highest trading volume among offshore exchanges, trailing only Binance. Instead of acquiring Bybit outright — which would bring direct offshore risk — Coinbase prefers an investment structure that lets it tap into Bybit’s order flow while keeping compliance walls intact.
Bybit’s US Market Dilemma
For Bybit, the US is the biggest prize it can't touch. American users are currently barred from trading on Bybit. Partnering with Coinbase offers a regulated gateway to US institutional capital that has so far remained out of reach.
Binance’s legal headaches — including founder Changpeng Zhao’s guilty plea — have weakened its US presence, shifting the competitive landscape. With the right timing, Bybit could redraw the map for offshore exchanges operating within US legal boundaries.
Valuation Talk: OKX as Benchmark
Analysts are comparing Bybit’s potential valuation to OKX, which recently hit nearly $25 billion after an investment from Intercontinental Exchange. If Bybit commands a similar multiple, Coinbase would need to write a very large check. Neither side has disclosed financial terms or a timeline so far.
Regulatory Hurdles Remain
Any strategic alliance between a US-regulated exchange and an offshore platform will draw intense scrutiny from US regulators. The SEC and CFTC’s stance, plus potential antitrust reviews, are all unknown variables. As one observer put it: “The general direction is getting clearer, but there are no definitive agreements or regulatory approvals at this stage.”
The outcome depends on how much regulatory risk Coinbase is willing to stomach and how far Bybit can go on compliance transformation. Markets will be watching closely for the next move.