Crypto Exchange Gemini Expands into Tokenized Stocks with MSTR Launch for EU Traders

Crypto exchange Gemini is stepping into tokenized stocks, offering its European Union based traders a new way to invest in onchain equities. The firm announced on Friday that it will begin with tokenized shares of Strategy, formerly known as MicroStrategy (MSTR), with plans to introduce additional stocks and exchange-traded funds in the near future.

This move positions Gemini as a key player in bridging traditional finance with blockchain tech, providing seamless access to U.S. equities for its EU clientele. By leveraging blockchain’s efficiency, Gemini aims to redefine how investors engage with global markets.

A New Era for Equity Trading

Gemini’s tokenized MSTR shares will initially trade on Arbitrum, an Ethereum Layer 2 scaling solution known for its speed and low transaction costs. The exchange plans to expand to other blockchain networks, broadening the reach of its tokenized offerings. Through a partnership with Dinari, a firm that recently secured U.S. regulatory approval to offer blockchain based financial instruments, Gemini is enabling fractional stock ownership and streamlined trading. Dinari’s tokenization-on-demand service ensures that these digital assets, dubbed dShares, are backed 1:1 by their corresponding U.S. equities, held securely with a regulated custodian.

The tokenized shares aim to replicate the economic rights of traditional stocks, where regulations permit, offering investors a familiar experience with the added benefits of blockchain’s 24/7 trading availability. Gemini emphasized its vision of transforming the financial system by combining top-tier assets with crypto’s accessibility. The firm’s statement highlighted its ambition to connect the world’s leading companies with investors globally, using blockchain to eliminate barriers in traditional equity markets. This approach allows EU customers to trade MSTR shares, currently priced at $383.88 on NASDAQ, with greater flexibility.

Gemini’s initiative follows a broader industry trend, with competitors like Coinbase and Kraken also pursuing tokenized stock offerings, though primarily for non U.S. users. Dinari’s regulatory milestone, announced on Thursday, marks a significant step forward for tokenized securities, positioning it as a pioneer in the U.S. market.

By integrating tokenized stocks, Gemini is catering to a growing demand for hybrid financial products that blend the reliability of traditional equities with the efficiency of blockchain. The fractional ownership model lowers the entry barrier for investors, enabling broader participation in high-value stocks like MSTR. As Gemini rolls out additional tokenized assets, it aims to create a robust ecosystem where investors can diversify their portfolios seamlessly. This launch underscores the exchange’s commitment to driving financial innovation while maintaining a user-centric approach.

The tokenized stock market is still in its early stages, but Gemini’s entry signals a shift toward greater integration of crypto and traditional finance. With plans to expand its offerings and network compatibility, the exchange is poised to capture a significant share of the growing demand for onchain equities. EU investors now have a new avenue to engage with U.S. markets, supported by blockchain’s transparency and efficiency.