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.
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.
“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 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.
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.
