US stock exchange giant Nasdaq is reportedly forming a strategic partnership with Gemini, the cryptocurrency exchange founded by the Winklevoss twins. This collaboration aims to provide Nasdaq with access to Gemini’s custody and staking services. As part of this partnership, Gemini has secured Nasdaq as a strategic investor, aligning with its plans to initiate an initial public offering (IPO) on the stock exchange, according to sources familiar with the matter.
Gemini is projected to raise up to $317 million through the IPO and has arranged for Nasdaq to acquire $50 million worth of shares via a private placement that will coincide with the public offering. This investment is seen as a significant facet of the strategic partnership, which is expected to allow Nasdaq to integrate Gemini’s custody and staking solutions into its operations. In turn, Gemini’s institutional clients will gain access to Nasdaq’s Calypso platform, facilitating the management and tracking of trading collateral.
These strategic plans remain tentative, contingent on market conditions and potential changes. The news follows Nasdaq’s recent announcement regarding its foray into tokenized securities—blockchain-based versions of conventional stocks. The exchange has filed with the US Securities and Exchange Commission (SEC) to modify securities rules to permit the trading of these tokenized assets. Nasdaq advocates for such products to be available through established and regulated market entities, expressing concerns over the proliferation of tokenized US stocks trading outside the US, particularly in Europe.
Gemini has already been active in this sector, having launched its own tokenized stock offerings in Europe, including assets such as Michael Saylor’s Strategy (MSTR) in June. The company highlighted the challenges in accessing traditional financial systems and emphasized the need for modernization in the industry. Despite inquiries made by Cointelegraph for comments from both Nasdaq and Gemini, no responses were provided before publication.
