Crypto Exchange Gemini has reportedly secured American stock exchange Nasdaq as a strategic partner with a $50 million investment ahead of its Initial Public Offering (IPO) this week.
Nasdaq To Back Gemini With Strategic Investment
On Tuesday, Reuters reported that Nasdaq is set to invest $50 million in the Winklevoss twins’ Gemini Space Station Inc. in a private placement during the crypto exchange’s IPO, scheduled for September 12, 2025.
The crypto exchange recently announced its plan to offer 16.7 million shares priced between $17 and $19 under the ticker name “GEMI,” with a potential raise of approximately $317 million.
According to anonymous sources close to the matter, the strategic partnership will give Nasdaq’s clients access to Gemini’s custody and staking services. Meanwhile, the crypto exchange’s institutional clients will have access to the stock exchange’s Calypso platform for collateral management and tracking trading activity.
The partnership is reportedly non-exclusive, and the company’s plans “are subject to market conditions and could change,” Reuters sources cautioned.
According to the S-1 filing reviewed by Bloomberg, Gemini said it had entered into an agreement with Nasdaq for the purchase of its Class A common stock. The deal will close immediately after its offering and was “agreed at a per-share price equal to Gemini’s IPO price less underwriting discounts and commissions,” but will be subject to certain closing conditions.
“We continue to expand our capabilities to serve our institutional clients and the broader investor universe as the regulatory landscape around crypto assets evolves,” a Nasdaq spokesperson told the news media outlet.
Nasdaq’s Push For Tokenization
The partnership with Gemini follows the American stock exchange’s push for tokenized securities. As reported by Bitcoinist, Nasdaq recently submitted a filing to the US Securities and Exchange Commission (SEC) to enable the trading of tokenized versions of traditional stocks on its platform.
Nasdaq President Tal Cohen highlighted the potential of integrating tokenization and blockchain technology with traditional market infrastructure, affirming that the fusion could offer significant advantages to both issuers and investors.
Similarly, Kraken met with the SEC’s Crypto Task Force last month to discuss the tokenization of traditional assets, the possibility of a tokenized trading system in the US, the regulation of crypto assets, and the legal and regulatory framework for operating said system.
Amid the industry’s momentum and favorable regulatory changes in the US, Coinbase has reportedly sought the SEC’s approval to offer tokenized stocks to its customers. Notably, the emerging sector is a “huge priority” for the exchange, Coinbase’s CLO Paul Grewal told Reuters in June.
Nonetheless, some traditional players have shared their doubts about the sector. Recently, the World Federation of Exchanges (WFE) called on securities regulators to crack down on tokenized equities, claiming that the blockchain-based tokens “create new risks for investors and could harm market integrity.”
In a letter sent to multiple global regulators, the coalition expressed its concerns that these tokens “mimic” stocks without providing the same rights or trading safeguards. They also urged the watchdogs to apply securities rules to tokenized assets, clarify legal frameworks for ownership and custody, and prevent the tokens from being marketed as equivalent to stocks.
Bitcoin (BTC) trades at $112,361 in the one-week chart. Source: BTCUSDT on TradingView
