Gemini Launches Tokenized MSTR Stock for EU Investors
Crypto exchange introduces 24/7 tokenized equity trading with MicroStrategy stock as its first offering.
Gemini has taken a major step toward merging traditional finance with the digital asset world by launching a tokenized version of MicroStrategy (MSTR) stock for investors in the European Union. This development offers a new way for crypto users to gain exposure to Bitcoin without directly buying the cryptocurrency, leveraging MicroStrategy’s extensive BTC holdings.
The move, announced on June 27, positions Gemini at the forefront of a growing trend among crypto platforms to bring U.S. equity exposure to international users through tokenization. By turning publicly traded stocks into blockchain-based assets, exchanges aim to unlock greater accessibility, liquidity, and trading flexibility for a global audience.
MSTR: A Gateway to Bitcoin Exposure
MicroStrategy (Strategy Inc.), led by outspoken Bitcoin advocate Michael Saylor, is widely known for its aggressive BTC accumulation strategy. With almost 600,000 BTC on its balance sheet, the company has become a de facto proxy for Bitcoin investment in public markets. As of late June, MSTR shares were trading at $383.88, reflecting a 3.84% increase over the past month, according to Google Finance.
By offering a tokenized version of MSTR, Gemini enables EU-based users to indirectly invest in Bitcoin through a stock that mirrors the cryptocurrency’s performance closely. This approach may appeal to both crypto-native users looking for equity diversification and traditional investors interested in Bitcoin but hesitant to hold the asset directly.
Key Benefits of Tokenized Equities
In its official announcement, Gemini described tokenized stocks as a remedy for the “limitations of traditional financial rails,” citing issues like restricted market hours, high international transaction fees, and cumbersome settlement processes.
“Tokenized stocks solve this problem by giving investors greater access with fewer restrictions,” the exchange stated. Among the highlighted advantages:
- 24/7 trading availability, removing dependence on market hours
- Lower fees for cross-border transactions
- Seamless integration with existing crypto portfolios
- Onchain settlement that enhances transparency and efficiency
To power this offering, Gemini partnered with Dinari, a U.S.-based securities provider that facilitates the tokenization process while ensuring compliance with regulatory standards. The platform emphasizes that token holders receive the same economic rights as traditional shareholders, where legally permitted, including dividend access and capital appreciation.
Industry-Wide Push Toward Tokenized Stocks
Gemini is not alone in this initiative. The release of tokenized MSTR stock comes amid a broader industry push to bridge traditional equity markets and blockchain infrastructure, particularly in Europe.
In May, Robinhood was reported to be developing a blockchain network to facilitate retail trading of U.S. equities in the EU. Shortly after, Kraken announced its intention to launch a similar offering, making tokenized U.S. stocks available to non-U.S. customers.
Meanwhile, Coinbase is also eyeing this space, with Chief Legal Officer Paul Grewal confirming the company is seeking SEC approval to offer tokenized equities in the United States. This aligns with Coinbase’s growing stature in traditional finance circles, especially following its entry into the S&P 500, replacing Discover Financial Services—a notable marker of crypto’s increasing integration with legacy markets.
According to Arnab Naskar, CEO of tokenization platform STOKR, the convergence of crypto and equities via tokenization represents a “trillion-dollar opportunity”, indicating the market’s immense potential to reshape global capital flows.
MSTR’s S&P 500 Prospects Tied to Bitcoin
The decision to tokenize MSTR is also timely, as financial analyst Jeff Walton recently highlighted the company’s strong potential to qualify for the S&P 500, contingent on Bitcoin maintaining a price above $95,240 through the end of Q2.
MicroStrategy has reported net losses for the last three quarters, but new accounting rules—ASU 2023-08—implemented in early 2024 could reverse that trajectory. The revised standard now allows companies to reflect unrealized gains and losses from Bitcoin holdings in their net income. This shift could significantly improve MicroStrategy’s financial position, increasing its eligibility for major stock indices.
With 592,345 BTC held on its balance sheet, the company’s Q2 results will be tightly coupled with Bitcoin’s fair market value. If favorable, it could bolster MSTR’s appeal to both traditional and digital investors, potentially making it one of the most valuable publicly traded companies, as Walton suggested earlier this year.
What’s Next for Gemini and Tokenized Stocks
While MSTR is the first tokenized equity available on Gemini, the exchange has indicated that more stocks and ETFs will be added soon. This expansion could transform how global investors engage with equities, offering instant settlement, crypto-native trading interfaces, and fractional ownership without relying on conventional brokerages.
As platforms like Gemini continue to experiment with asset tokenization, the lines between traditional finance and decentralized systems are becoming increasingly blurred. Whether this innovation can deliver on its promise of inclusivity and efficiency will depend on regulatory cooperation, market demand, and the performance of early offerings like tokenized MSTR.
With financial rails evolving rapidly and crypto-native users seeking new investment gateways, Gemini’s move marks a notable milestone in the mainstreaming of tokenized finance.
