- Gemini launches tokenized stock trading for EU customers, starting with MSTR shares.
- The exchange aims to expand its tokenized stocks and ETFs to global markets soon.
- Tokenized stocks offer fractional ownership and direct on-chain settlement benefits.
Cryptocurrency exchange Gemini has launched tokenized stock trading to European Union (EU) clients, beginning with Strategy (MSTR) shares. The exchange is initiating the deployment of tokenized U.S. equities on blockchain networks. It has partnered with Dinari to offer fractional stock ownership through on-chain tokens backed by real securities. This allows investors to hold digitally secured, fractional shares.
MSTR tokens will be initially launched on Arbitrum (ARB), a Layer-2 scaling solution for Ethereum. Gemini aims to expand its tokenized stock offerings to other blockchain chains in the future. This step is part of a larger initiative by Gemini to make U.S equities available to the rest of the globe by using blockchain technology.
Gemini’s Push for Global Access to U.S. Stocks and ETFs
One of the targets of Gemini’s new proposal is to democratize access to U.S. stocks. The exchange is confident that tokenized equities will provide an avenue for integrating traditional stocks with the liquidity and accessibility that crypto markets offer. Geminin Stated,
Anyone in the world with a smartphone and an internet connection can gain access to tokenized U.S. equities like MSTR on the blockchain.
The exchange plans to introduce additional tokenized stocks and exchange-traded funds (ETFs) in the near future. Gemini would like to facilitate cross-border financial inclusion by issuing tokenized shares. The company’s aim is to make stocks in the U.S. more accessible and sell them in the global market.
Related: Gemini Enables SOL Staking, DFDV Stock Tokenized on Solana
The tokenized equity is an alternative solution for investors in a market where currency conversion costs are high or there is restricted access to market brokers. The tokenized stocks at Gemini provide an opportunity to issue U.S. stocks to a global group of investors. The exchange’s new offering is viewed as a move to modernize financial markets using blockchain technology.
Gemini became the first major crypto exchange to offer tokenized stocks in the EU market. The offering follows a growing public interest in securities custody and settlement rails among institutions. The project may pave the way for the mainstream deployment of tokenized securities within existing financial ecosystems.
Crypto Exchanges Eye Tokenized U.S. Stocks for Global Reach
Besides Gemini, other crypto exchanges are also examining tokenized U.S. equities. The fintech stock brokerage Robinhood is allegedly developing a blockchain network to allow European retail traders access to U.S. securities. On the same note, crypto exchange Kraken has announced that it will enable non-U.S. clients to trade tokenized U.S. stocks. Coinbase is also working on launching tokenized equities and is currently seeking SEC approval for their issuance.
Some analysts believe that a multi-trillion-dollar market will form as the market in tokenized equities continues to gain traction. According to Arnab Naskar, STOKR CEO, tokenized stocks may represent a significantly larger market. The growth potential is substantial, although it is challenging to predict its exact size.
The launch of tokenized stock trading on Gemini is a significant step toward the future of finance. Blockchain technology has the potential to facilitate increased trading in U.S. equities as the tokenization of conventional assets is further advanced. The move by Gemini may set the stage for other exchange platforms to introduce tokenized stock offerings to their users worldwide.
