Gemini and Nasdaq Forge $50M Path to Crypto Mainstream

Nasdaq has reportedly agreed to invest $50 million in Gemini, a cryptocurrency exchange, through a private placement as part of the latter's upcoming initial public offering (IPO) on the Nasdaq exchange, according to sources cited in a recent Reuters report [2]. This strategic investment is expected to facilitate closer integration between Gemini's custody and staking services and Nasdaq's infrastructure. In return, Gemini's institutional clients will gain access to Nasdaq’s Calypso platform, a tool for managing and tracking trading collateral, while Nasdaq's clients will benefit from access to Gemini's services [3]. The deal aligns with Nasdaq's broader initiative to expand its involvement in digital assets and blockchain-based technologies.

Gemini plans to raise up to $317 million through its IPO, offering between $17 and $19 per share for 16.67 million shares. This offering is expected to value the company at up to $2.22 billion, based on the upper end of the proposed pricing range [1]. The IPO filing, submitted to the Securities and Exchange Commission (SEC), marks a significant step for the crypto exchange, which has faced regulatory challenges in recent years. In 2023, the SEC charged Gemini with selling unregistered securities, particularly through its high-yield Earn product. The firm has since returned over $1.1 billion to affected customers through bankruptcy proceedings and paid several regulatory settlements [1].

The IPO comes at a pivotal moment for the crypto and fintech sectors, as several firms, including Klarna and Figure, also explore public listings. Gemini’s financial performance has shown mixed results: while its revenue increased to $142.2 million in 2024 from $98.1 million in 2023, it reported a significant loss of $282.5 million in the first half of 2025 on $68.6 million in revenue [1]. These figures highlight the challenges the company faces in maintaining profitability, especially in a highly volatile and increasingly regulated environment.

Nasdaq’s investment in Gemini is part of a broader strategy to embrace tokenization and blockchain-based securities. In a separate filing with the SEC, Nasdaq proposed allowing the trading of tokenized versions of equity securities and exchange-traded products (ETPs) on its markets. The proposal aims to enhance financial innovation while maintaining stability, fairness, and investor protections. Under the plan, investors would have the choice of receiving their investments in either traditional or tokenized form, with tokenized trades being cleared and settled through the Depository Trust Corporation (DTC) [4]. This move is expected to streamline settlement processes and reduce transaction costs.

The partnership with Gemini represents a strategic expansion for Nasdaq into the custody and staking services sector, a critical area for institutional investors in the crypto space. By integrating these services with its existing platforms, Nasdaq aims to create a more seamless and secure environment for managing digital assets. This integration also supports its goal of positioning itself as a leader in the tokenization of traditional securities, a trend that has seen increasing interest from global investors and regulators.

As the market for digital assets continues to evolve, Nasdaq’s moves signal a shift toward greater institutional adoption and regulatory clarity. The success of Gemini’s IPO and the broader tokenization initiative will depend on how effectively these strategies align with investor demand and regulatory expectations. With the SEC’s review process ongoing, the final outcome of these developments remains subject to market conditions and regulatory approval. Nevertheless, the partnership between Nasdaq and Gemini underscores a growing recognition of the potential of blockchain technology in reshaping the financial landscape.

Source:

[1] Gemini IPO aims for $2.2B valuation (https://www.bankingdive.com/news/gemini-ipo-winklevoss-sec-nasdaq-valuation-trade/759166/)

[2] Nasdaq Eyes Gemini Crypto Services Via $50M Investment (https://cointelegraph.com/news/nasdaq-invests-gemini-crypto-custody-staking)

[3] Gemini reportedly seeks investment from Nasdaq as it eyes IPO this week (https://www.thestreet.com/crypto/markets/gemini-reportedly-seeks-investment-from-nasdaq-as-it-eyes-ipo-this-week)

[4] Q&A: Nasdaq's New Proposal for Tokenized Securities (https://www.nasdaq.com/newsroom/qa-nasdaqs-new-proposal-tokenized-securities)