Gemini Set to Go Public as Nasdaq Bets Big on Crypto's Future

Nasdaq has reportedly secured a strategic investment in the cryptocurrency exchange Gemini, valued at $50 million, in a move that aligns with its broader push into blockchain-based financial services. The investment is part of a wider partnership, under which Gemini will provide custody and staking services to Nasdaq clients, while Nasdaq’s Calypso platform will become available to Gemini’s institutional clients for managing trading collateral. This collaboration, according to sources familiar with the matter, is expected to support Gemini’s upcoming initial public offering (IPO) on the Nasdaq Global Select Market under the ticker symbol “GEMI” [1].

Gemini, which is preparing to list on the Nasdaq, plans to raise up to $317 million through the offering, with Nasdaq set to purchase $50 million in shares via a private placement. The IPO plans, which remain subject to market conditions, are a significant step for Gemini, which has built a strong reputation as a regulated U.S. crypto exchange. According to data provider Kaiko, Gemini is among the largest U.S. crypto trading platforms by volume, having handled $285 billion in lifetime trading volume and managing $21 billion in assets [2].

The move also aligns with Nasdaq’s recent initiative to expand into tokenized securities, which are blockchain-based versions of traditional stocks. Nasdaq has filed with the U.S. Securities and Exchange Commission (SEC) to amend securities rules to facilitate the trading of tokenized securities. The exchange has argued that these products should be available on regulated platforms to avoid the fragmentation of trading venues and to promote broader adoption [1]. Gemini itself has already launched tokenized stocks in Europe, including shares of MicroStrategy (MSTR), highlighting its growing role in this emerging market [1].

Gemini’s IPO will be led by top Wall Street firms, including Goldman Sachs, Citigroup, Morgan Stanley, and Cantor, which are acting as lead bookrunners. Additional bookrunners and co-managers include Evercore ISI, Mizuho, and Truist Securities, among others. The offering will be made through a prospectus, with details available from lead underwriters. Gemini has applied to list its Class A common stock on the Nasdaq Global Select Market, with the initial public offering price expected to range between $17.00 and $19.00 per share [3].

The broader market context has been favorable for digital asset companies seeking public listings. Recent successful IPOs include Circle Internet Group, which raised $583 million in June, and Bullish, another crypto exchange that recently entered the public market. Gemini’s IPO would make it the third publicly traded crypto exchange in the U.S., following Coinbase and Bullish. The Winklevoss-founded exchange has reported significant trading volumes but also disclosed a net loss of $282.5 million for the six months ended June 30, according to its SEC filing [2].

The strategic partnership between Nasdaq and Gemini reflects the evolving landscape of the financial services industry, where traditional institutions are increasingly integrating crypto-related services. This development may signal a broader acceptance of digital assets among institutional players, potentially influencing regulatory and market dynamics in the sector.

Source:

[1] Exclusive-Winklevoss-founded crypto exchange Gemini taps (https://finance.yahoo.com/news/exclusive-winklevoss-founded-crypto-exchange-090622243.html)

[2] Gemini Announces Launch of Initial Public Offering (https://www.prnewswire.com/news-releases/gemini-announces-launch-of-initial-public-offering-302543703.html)

[3] Gemini IPO Targets $2.22B Valuation – Will Winklevoss Pull It Off? (https://finance.yahoo.com/news/gemini-ipo-targets-2-22b-155931570.html)