Gemini Launches Tokenized Stocks for EU Customers

Gemini, the crypto exchange founded by Cameron and Tyler Winklevoss, has expanded its services to include tokenized stocks for customers in the European Union. The firm announced on Friday that it has begun offering tokenized shares of Strategy, known as the world's largest corporate bitcoin holder, with plans to add more stocks and exchange-traded funds (ETFs) in the coming days.

Gemini has partnered with Dinari, a firm specializing in tokenizing real-world assets, to issue these tokens. Dinari recently obtained a broker-dealer registration from the Financial Industry Regulatory Authority (FINRA), enabling it to offer tokenized versions of U.S. stocks. This collaboration allows Gemini to provide its EU customers with access to tokenized U.S. stocks, leveraging blockchain technology to bring traditional financial instruments onto the digital rails.

The move by Gemini is part of a broader trend in the crypto industry, where trading platforms are increasingly eyeing tokenization to expand their offerings. Other major players in the crypto space, such as Coinbase and Kraken, are also exploring the possibility of entering the tokenized securities trading market. Additionally, Robinhood is reportedly working on offering tokenized U.S. stocks for EU users, indicating a growing interest in this area.

Gemini's expansion into tokenized stocks comes on the heels of securing a MiFID II license from Malta last month. This license allows the firm to offer derivative products across the European Economic Area, further solidifying its position in the European market. The introduction of tokenized stocks is a strategic move that aligns with the increasing demand for bringing traditional financial instruments onto blockchain rails, also known as the tokenization of real-world assets.