Crypto exchange Gemini has launched a tokenized version of MicroStrategy (MSTR) stock for users in the European Union, opening a new channel for onchain access to traditional equities.
The move is part of a broader trend by crypto platforms to bring US financial assets to international investors via blockchain-based solutions.
A Modern Approach to Stock Trading
In a statement released on Friday, Gemini emphasized the outdated nature of traditional financial systems.
“Traditional financial rails are hard to access and in need of modernization,” the company said.
Gemini explained that tokenized stocks offer greater accessibility by removing barriers tied to market time zones, fees, and geographical restrictions.
“Tokenized stocks solve this problem by giving investors greater access with fewer restrictions,” it added.
Seamless Onchain Trading Experience
With this feature, users can hold both cryptocurrencies and tokenized stocks within the same platform, eliminating the need to switch between brokers.
Gemini partnered with US securities provider Dinari to enable this functionality.
“By leveraging Dinari’s tokenization-on-demand model, we can offer customers greater liquidity, transparency, and the same economic rights as the backing security, where permitted,” Gemini said.
MSTR Leads the Rollout, More to Follow
Currently, only MSTR is available as a tokenized stock.
However, Gemini announced plans to list more tokenized stocks and exchange-traded funds (ETFs) in the coming days.
At the end of Friday’s trading session, MSTR was down 0.71%, though it has gained 3.84% over the past 30 days, trading at $383.88.
Analyst Jeff Walton believes MSTR could qualify for inclusion in the S&P 500 index if Bitcoin remains above $95,240 through the end of Q2.
Tokenized Equities Attract Growing Interest in Europe
Gemini’s launch aligns with a rising trend among crypto companies offering tokenized financial instruments to European investors.
Earlier in May, reports emerged that Robinhood was building a blockchain network to allow European users to trade tokenized US securities.
A few weeks later, Kraken said it would introduce tokenized US stocks for non-US customers.
Coinbase is also seeking approval from the US Securities and Exchange Commission (SEC) to launch similar services domestically.
STOKR CEO Arnab Naskar recently noted the enormous growth potential of tokenized equities, saying it is “definitely a bigger trillion-dollar market.”