Nasdaq To Invest $50 Million In Gemini, Requests Tokenized Trading
Nasdaq is launching itself into the crypto space with two pieces of news early Tuesday. The stock exchange on Monday filed with the SEC to allow trading for tokenized securities. Nasdaq also plans to invest $50 million into Gemini, while the crypto exchange's initial public offering expected later this week.
Reuters on Tuesday reported that
Nasdaq (
NDAQ) has signed on as a strategic investor to Gemini Space Station, which is expected to IPO on Friday. Nasdaq will buy $50 million in shares in a private placement, which will close immediately after the IPO. Gemini is the crypto exchange founded by the Winklevoss twins, who were involved in Facebook's origins.
As part of the deal, Gemini will give Nasdaq's clients the ability to custody and stake crypto assets. Gemini will become a reseller for Nasdaq's Calypso Solution, which will give its institutional customers access to collateral management solutions.
"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 shared in a note.
Last week, Gemini filed to raise over $300 million in an IPO. The company plans to sell 16.67 million shares of its class A common stock with an expected price range between $17 and $19 per share. The exact size and timing of the offering is still subject to change based on market conditions.
Gemini plans to trade on the Nasdaq under the ticker symbol GEMI.
Gemini's financial report showed a net loss of $282.5 million for the first half of 2025, widening from a loss of $41.4 million for the first half of 2024.
Nasdaq Seeks To Tokenize Stocks
Elsewhere, Nasdaq on Monday filed with the Securities and Exchange Commission, asking the regulator for a rule change that would allow it to trade tokenized stocks. If granted, the exchange would be able to offer both traditional securities trading and trading for tokenized securities that utilize the blockchain. A share of a tokenized security would be available for trade in the Nasdaq Market Center on the same order book as its traditional counterpart under the proposal.
"The Exchange believes the markets can use tokenization while continuing to provide the benefits and protections of the national market system," Nasdaq wrote in the filing.
Chuck Mack, Senior Vice President of North American Markets for Nasdaq, told Nasdaq Newsroom in a Q&A session that the company is seeing demand for tokenization.
"Many in the market, including Nasdaq, see tokenization as having potential to benefit investors, issuers, and the economy more broadly," Mack said. "Blockchain technology can provide a number of potential efficiencies, including faster settlements, improved audit trails, and more streamlined flow from order to trade to settlement. Additionally, once an equity asset is on the blockchain, it has the potential to be used in more ways."
Robinhood (
HOOD) in June announced
plans to launch tokenized stock trading, while crypto exchange Kraken began rolling out tokenized stocks and ETFs in late June.
Nasdaq stock ticked lower Tuesday, still holding above its
21-day exponential moving average after rebounding Monday from the
50-day line.
NDAQ stock could offer an entry with a little strength, breaking a short
downtrend while still close to the 50-day/10-week line
The stock also has a four-weeks-tight pattern with a 97.63 buy point that matches the Aug. 11 record high. Nasdaq is on track to have a
flat base after this week.
NDAQ stock has jumped nearly 23% so far this year.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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