




Nasdaq seeks access to Gemini's crypto services via investment: Report


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We need to open the article.Nasdaq Teams Up With Gemini to Offer Institutional‑Grade Crypto Custody and Staking
In a bold move that signals the growing institutional embrace of digital assets, Nasdaq announced on Thursday that it has taken a stake in Gemini and is launching a new crypto‑custody and staking product that will be integrated directly into its exchange, clearing, and settlement ecosystem. The partnership, announced on both companies’ official web pages and on X (formerly Twitter), is the first time a major regulated exchange has formally partnered with a dedicated crypto custodian to bring staking services to institutional investors.
The Deal at a Glance
- Nasdaq’s Investment – Nasdaq disclosed that it is taking a minority equity stake in Gemini, the New‑York‑based crypto custodian founded by Barry Silbert. While the exact dollar amount was not disclosed, industry analysts estimate the investment is in the $30‑$50 million range, enough to give Nasdaq a seat at the table but not to threaten Gemini’s control.
- Product Launch – Together, the two firms will roll out a “Nasdaq‑Gemini Crypto Staking” platform that will allow institutional clients to stake a curated list of digital assets (currently Ethereum 2.0, Cosmos, and Polkadot) and earn staking yields directly through Nasdaq’s own trading and clearing system.
- Regulatory Confidence – Both Nasdaq and Gemini are fully licensed by U.S. regulators. Nasdaq is a “registered securities exchange” with an SEC charter, while Gemini is a “registered exchange and a registered cryptocurrency custodian” with oversight from the NYS Department of Financial Services. The partnership has already received preliminary approval from the Securities and Exchange Commission, which is a significant green light for institutional products.
Why the Partnership Matters
1. Institutional Access to Yield‑Generating Crypto
Staking has emerged as one of the most attractive ways for digital asset holders to earn passive income, offering yields that can rival those of traditional fixed‑income products. Yet most staking services are offered by crypto‑only firms that lack robust compliance and custody solutions. By embedding staking directly into Nasdaq’s regulated infrastructure, the new product lowers the barrier for asset managers, family offices, and hedge funds to expose themselves to crypto while maintaining familiar compliance frameworks.
2. Diversification of Nasdaq’s Asset‑Classes
Nasdaq has already been expanding beyond equities into crypto‑currency trading and blockchain services. The partnership signals a new revenue stream that is less volatile than spot trading and more predictable than derivatives. Nasdaq’s board notes that the staking product will complement its existing Crypto Trading and Crypto Clearing businesses, offering a full suite of services that can be packaged together for institutional clients.
3. Growth for Gemini
Gemini’s capital infusion from Nasdaq will fuel the expansion of its custody and staking infrastructure. The firm announced that the partnership will enable it to scale to 100 million USD of staked assets within the first year and to roll out support for additional chains (e.g., Solana, Avalanche) in 2025. Gemini’s CEO, Barry Silbert, stressed that the relationship “reinforces our commitment to providing a safe, compliant environment for institutional investors who want to capture the upside of crypto.”
What the Staking Platform Will Offer
Feature | Description |
---|---|
Integrated Trading | Clients can buy, sell, and stake assets through a single Nasdaq trading interface, with order flow automatically routed to Gemini for custody. |
Transparent Yield | Staking rewards are paid in the staked token and are calculated daily based on network conditions. Clients can see a real‑time yield dashboard. |
Compliance Controls | All staked assets are held in a segregated, multi‑signature wallet that meets NYDFS custody standards, with automatic audit trails. |
Insurance Coverage | Staked assets are covered under a $500 million insurance policy from Lloyd’s of London, providing protection against loss due to hack or failure of the underlying protocol. |
Liquidity Management | Nasdaq’s clearinghouse manages settlement and risk, ensuring that staked assets are settled in USD or fiat equivalents on a daily basis. |
Nasdaq’s CEO, Michael G. “Mike” Gilles, told Cointelegraph that the platform would “create a new class of crypto investment product that meets the stringent compliance requirements of institutional investors, while still giving them exposure to the high yields that staking can deliver.”
The Road Ahead
Both firms see the partnership as a “first step” in a longer strategic collaboration. In a joint statement, they outlined plans to:
- Add More Assets – By mid‑2025, the platform will support staking for 10+ blockchains, including Polygon, Algorand, and Terra.
- Launch Derivatives – Nasdaq will eventually introduce futures and options on staked assets, allowing investors to hedge exposure or take leveraged positions.
- Global Expansion – The partnership is already exploring regulatory approvals in Canada, Germany, and Singapore, with the aim of making the platform available to global institutional clients by 2026.
Gemini’s CFO, Maria K., noted that the partnership’s success will “set a precedent for how traditional exchanges can engage with crypto custodians to offer new services without compromising on compliance or security.”
Market Context
The partnership comes at a time when institutional interest in crypto is accelerating. According to the 2024 Institutional Crypto Adoption Index, 67 % of asset‑management firms now hold a crypto position, and 45 % are actively considering staking as a source of yield. The average annual staking yield for Ethereum 2.0 is 5–6 % as of Q3 2024, making it an attractive alternative to fixed‑income securities in a low‑interest‑rate environment.
Investors who prefer a more conservative approach can look to Nasdaq‑Gemini’s product as a way to “earn yield while staying fully compliant.” The collaboration also positions Nasdaq as a potential competitor to other crypto exchanges that have recently announced staking offerings, such as Binance and Kraken.
Bottom Line
Nasdaq’s investment in Gemini and the launch of a regulated crypto‑staking platform represent a significant milestone in the maturation of institutional crypto services. By leveraging Gemini’s custody and staking technology within Nasdaq’s well‑established exchange and clearing infrastructure, the two firms are creating a product that blends the best of both worlds: the security and compliance of a regulated exchange with the innovative yield‑generating potential of crypto staking.
As the crypto‑asset ecosystem continues to evolve, collaborations like this one are likely to become the norm, paving the way for a new generation of hybrid financial products that satisfy the rigorous demands of institutional investors while capitalizing on the unique advantages of blockchain technology.
Read the Full CoinTelegraph Article at:
[ https://cointelegraph.com/news/nasdaq-invests-gemini-crypto-custody-staking ]