Gemini Exchange Secures Nasdaq Investment Ahead Of $317 Million IPO

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has lined up Nasdaq as a strategic backer for its planned initial public offering in New York this week.

What Happened: The exchange is aiming to raise as much as $317 million through the listing and has secured a commitment from Nasdaq to purchase $50 million worth of shares in a private placement at the time of the IPO, Reuters reported, quoting sources.

The arrangement, which has not yet been made public, would also create a partnership between the two companies.

As part of the agreement, Nasdaq's clients will gain access to Gemini's custody and staking services, while Gemini's institutional users will be able to utilize Nasdaq's Calypso platform for managing and tracking collateral.

Gemini is expected to begin trading under the ticker "GEMI" by the end of the week, though the timing could shift depending on market conditions.

Also Read: Stablecoins Could Reach $4 Trillion Market Cap By 2030: Bernstein

Neither Nasdaq nor Gemini immediately responded to requests for comment.

The IPO arrives amid renewed strength in U.S. equity capital markets, where recent high-profile listings have drawn significant investor interest.

Companies such as design software developer Figma and aerospace firm Firefly Aerospace saw strong first-day demand, helping revive confidence in the IPO pipeline.

Why It Matters: Digital asset firms have also been active in public listings this year, including Circle (NYSE:CRCL) and Bullish (NYSE:BLSH), both of which delivered high-profile debuts.

Gemini's offering would make it the third publicly traded crypto exchange, alongside Coinbase (NASDAQ:COIN) and Bullish, with Coinbase becoming the first digital asset platform to join the S&P 500.

Data from Kaiko shows Gemini is among the largest U.S.-based exchanges by trading volume, with $21 billion in assets under custody and lifetime trading volume exceeding $285 billion.

Its business spans over-the-counter trading, a crypto-backed credit card, and support for major tokens including Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and stablecoins.

Transaction fees remain the company's primary source of revenue.

Financial filings with the U.S. Securities and Exchange Commission indicate Gemini reported a net loss of $282.5 million on revenue of $68.6 million for the six months ending June 30.

That compares with a $41.4 million loss on $74.3 million in revenue during the same period last year.

The Winklevoss brothers, known as the "Bitcoin twins" for their early cryptocurrency investments following a settlement with Facebook in 2008, are among the earliest billionaires to emerge from the digital asset industry.

Read Next:

• Bitcoin Hits $112,000— But Tom Lee Says $200,000 Might Still Come This Year

Image: Shutterstock