Digital assets firm Gemini, which provides a cryptocurrency exchange and serves as a custodian, has announced an expansion of its tokenized stock offerings for customers in the European Union.
The latest batch of tokenized stocks, or dShares, includes names such as Advanced Micro Devices (AMD), Reddit, Inc., and GameStop Corp., alongside other companies like Riot Platforms, Inc., Mercado Libre, Inc., AMC Entertainment Holdings, Inc., Pfizer Inc., and SELLAS Life Sciences Group Inc.
This move, facilitated through Gemini’s partnership with Dinari, a U.S. SEC-registered transfer agent, underscores the platform’s commitment to bridging traditional finance with blockchain technology, offering EU investors greater access to U.S. equities in a modernized, digital format.
Tokenized stocks, or dShares, are digital derivatives backed 1:1 by corresponding U.S. public equities, providing the same economic rights as traditional shares where permitted.
Unlike conventional stock trading, these tokenized assets are available for trading 24/7, offer fractional ownership, and enable instant settlement on the blockchain, specifically the Arbitrum network for efficiency.
This structure eliminates the need for a U.S. brokerage account, making U.S. equities more accessible to EU investors.
Gemini Intergalactic EU Artemis, Ltd., the platform’s entity regulated by the Malta Financial Services Authority (MFSA) under the Investment Services Act, ensures compliance with EU financial regulations, fostering trust and security for users.
The inclusion of AMD, Reddit, and GameStop in this batch is particularly noteworthy, as these companies represent diverse sectors with significant market attention.
AMD, a key player in the semiconductor industry, has been a powerhouse in technology, driven by demand for its chips in AI, gaming, and data centers.
Reddit, a social media platform, has gained prominence for its role in shaping online discourse and fueling retail investor movements, notably during the 2021 “meme stock” saga.
GameStop, a specialty retailer of video games and electronics, remains somewhat of a small cultural and financial phenomenon, synonymous with retail investor activism and its ongoing digital transformation into e-commerce and Web3 ventures.
These additions cater to a range of investor interests, from technology and social media to retail and gaming.
Gemini’s partnership with Dinari leverages a tokenization-on-demand model, ensuring liquidity, transparency, and spot price tracking of the underlying securities.
This approach allows investors to buy fractions of shares, lowering the barrier to entry for high-value stocks and enabling portfolio diversification.
The tokenized stocks are held with a regulated custodian, reinforcing Gemini’s focus on safety and compliance.
The platform holds seven VASP licenses, an EMI from Ireland, and a MiFID II license in Malta, positioning it as a trusted player in the crypto and tokenized asset space.
However, Gemini emphasizes that tokenized stocks carry risks akin to traditional equities, including sharp price fluctuations driven by market sentiment, economic conditions, earnings announcements, interest rate changes, and geopolitical events.
The platform advises investors to fully understand these risks and seek independent advice if needed, as derivatives are complex instruments not suitable for all.
A 1.49% fee is charged on tokenized stock trades, with no additional costs for maintaining an account, and trading is currently available only via Gemini’s mobile app and web interface in Gemini mode.
This expansion follows Gemini’s rollout of tokenized equities, with 37 stocks now available after multiple phases, including earlier additions like Strategy, Nike, and McDonald’s.
The platform’s strategy positions it to compete with exchanges like Kraken and Bybit, as well as fintech firms like Robinhood, which recently launched tokenized U.S. stocks for EU customers.
The tokenized equities market, reportedly surpassing $417 million with over 57,000 holders, reflects a trend in Web3, with Gemini aiming to replicate traditional markets on the blockchain.
Gemini’s Head of Consumer Growth for Europe, Claudio Bedino, highlighted the platform’s vision to enhance user experience and expand its offerings, potentially including natively issued tokenized shares.
As regulatory frameworks like the EU’s MiCA evolve, Gemini is positioned to key role in the tokenized asset adoption trend, offering EU investors a way to engage with global markets.