Nasdaq Invests $50 Million in Gemini to Access Crypto Custody and Staking Services
Nasdaq has acquired a $50 million stake in cryptocurrency exchange Gemini as part of a private placement concurrent with Gemini’s planned initial public offering (IPO), Reuters reported Tuesday, citing sources familiar with the matter. Gemini aims to raise up to $317 million through the IPO.
The investment is more than a financial transaction; it establishes a strategic partnership designed to provide Nasdaq with access to Gemini’s crypto custody and staking services. In return, Gemini’s institutional clients will be able to utilize Nasdaq’s Calypso platform to manage and monitor trading collateral.
Expanding Tokenization and Modernizing Financial Infrastructure
This development comes shortly after Nasdaq’s announcement on Monday to advance its efforts in tokenized securities — blockchain-based versions of traditional stocks. Nasdaq has filed with the U.S. Securities and Exchange Commission (SEC) to amend securities rules to facilitate regulated trading of tokenized securities on established market venues.
Nasdaq criticized the fragmented landscape of tokenized stock trading, particularly pointing to the proliferation of unregulated offerings in Europe. Gemini has been active in this domain, launching tokenized stock offerings in Europe, including shares of Michael Saylor’s MicroStrategy (MSTR) in June.
The partnership and investment are contingent on market conditions and may evolve. Both Nasdaq and Gemini declined to comment prior to publication.
FinOracleAI — Market View
Nasdaq’s strategic investment in Gemini signals a concerted effort to integrate cryptocurrency services into traditional financial infrastructure, particularly custody and staking. This move supports Nasdaq’s broader ambition to lead in tokenized securities trading under regulated frameworks, positioning it favorably amid growing institutional interest in digital assets.
Risks include regulatory uncertainties around tokenized securities and the volatile nature of crypto markets, which could impact adoption timelines and partnership dynamics. Market participants should monitor SEC responses to Nasdaq’s filings and Gemini’s IPO progress for further clarity.
Impact: positive
