Gemini, the crypto exchange founded by the Winklevoss twins, is moving forward with its initial public offering and has secured Nasdaq as a key investor. The IPO aims to raise about $317 million, with Nasdaq set to purchase $50 million in shares through a private placement. This partnership links one of the largest U.S. stock exchanges with one of the better-known digital asset platforms, highlighting how traditional finance and crypto continue to overlap.
The investment is more than financial. It builds a strategic partnership that connects Gemini’s custody and staking services with Nasdaq’s infrastructure. Custody allows institutional clients to store digital assets securely, while staking lets them earn rewards by supporting blockchain networks. In return, Gemini’s clients gain access to Nasdaq’s Calypso platform, which helps institutions manage and track trading collateral. Both sides see value in combining resources as the market for tokenized securities grows.
Nasdaq has been working to expand into blockchain-based markets. Recently, it filed with the U.S. Securities and Exchange Commission to update rules so that securities could be traded in tokenized form. Tokenization means taking a traditional asset, like a stock or bond, and putting it on a blockchain. The exchange believes these products should be offered by regulated players, not on small unregulated platforms. It expressed concern about many versions of tokenized U.S. stocks already trading in Europe.
Gemini has already offered tokenized stocks in Europe, including shares of companies like MicroStrategy, led by Michael Saylor. These products give investors exposure to U.S. equities without going through traditional financial rails, which Gemini has argued are outdated and difficult to access. By offering tokenized shares, the company has tried to modernize how investors trade and manage securities, while Nasdaq’s move shows that major exchanges are also looking in this direction.
The partnership reflects a broader push for modernization in financial markets. Traditional stock exchanges like Nasdaq operate under strict rules, but they see demand for new products like custody of crypto assets, staking services, and blockchain-based stocks. By joining with Gemini, Nasdaq gets direct access to the crypto world while helping to build regulated paths for tokenization. For Gemini, partnering with Nasdaq strengthens its position as it prepares for the IPO and seeks to raise hundreds of millions in fresh capital.
The $317 million Gemini IPO, with Nasdaq’s $50 million stake, could become a signpost for the next phase of crypto adoption. Unlike past IPOs, this one links a major crypto exchange with a traditional stock market operator. Reuters reported that the offering is subject to market conditions, which means the timing and final details could shift. Still, the partnership gives both sides incentives to move forward, since each brings something the other needs: Gemini brings custody and staking, Nasdaq brings scale and trust from decades of running regulated markets.
Nasdaq has also been vocal about its strategy. By filing with the SEC for rule changes, it hopes to create a clear legal basis for trading tokenized securities in the U.S. market. The stock exchange believes that offering tokenized stocks on established platforms will help investors avoid the risks of trading them in offshore or siloed venues. For regulators, having large exchanges handle tokenized assets could provide more oversight and transparency.
Gemini, founded by Cameron and Tyler Winklevoss, has built its reputation as a regulated crypto exchange in the United States. Its services appeal to both retail and institutional clients, and custody has become one of its core offerings. Institutional investors often require safe and compliant storage before they can allocate significant capital to crypto. Staking, which allows holders to lock up coins to support blockchain networks and earn rewards, is also growing in importance. By integrating these services with Nasdaq’s systems, Gemini positions itself as a bridge between two financial worlds.
The rise of tokenization is central to this story. By converting real-world assets like stocks into blockchain-based tokens, markets can potentially settle trades faster and reduce reliance on older infrastructure. For investors, tokenized securities can offer new ways to access assets and manage risk. Both Gemini and Nasdaq see this trend as unavoidable, and their partnership shows a willingness to shape the future rather than wait for it to arrive.
Gemini’s IPO and Nasdaq’s $50 million investment are not just about raising money. They signal how traditional finance and crypto are merging. The deal highlights custody, staking, tokenized securities, and the role of regulated exchanges in shaping how these markets evolve. As both companies push forward, they are betting that modernization through tokenization will become a foundation of tomorrow’s financial system.
