Gemini, a cryptocurrency exchange operator, submits paperwork to become a publicly traded company

Gemini Space Station Inc., the entity behind a well-known cryptocurrency exchange, has confidentially filed for an initial public offering. This decision follows rumors that surfaced approximately four months ago suggesting that a public listing was in the works. Shortly after, reports emerged that Gemini had engaged the services of Goldman Sachs Group Inc. and Citigroup Inc. to oversee the listing process.

As the company has filed confidentially, specifics regarding the number of shares it intends to offer or the price at which they will be offered remain undisclosed. Similarly, details about the targeted valuation also remain under wraps. Gemini achieved a private valuation of $7.1 billion following a recent fundraising round that brought in $400 million.

Established in 2014 by the Winklevoss twins, Tyler and Cameron, who gained notoriety for their legal battle with Mark Zuckerberg over Facebook, Gemini facilitates the trading of over 70 different cryptocurrencies on its exchange platform. In addition to providing access to crypto derivatives tied to digital assets, Gemini also boasts the Gemini dollar, a stablecoin linked to the U.S. dollar and built on the Ethereum blockchain. This unique cryptocurrency supports smart contracts, enabling automation of financial processes like fund transfers.

Beyond its exchange services, Gemini offers a variety of financial technology products. Notably, the Gemini Credit Card allows users to earn cryptocurrency cashback on purchases. The platform also includes ActiveTrader, an application designed to assist investors in managing their cryptocurrency portfolios. Until 2023, Gemini operated Gemini Earn, a lending service enabling users to lend their digital assets to others. Unfortunately, this service was discontinued due to its partner’s insolvency, prompting an investigation by the U.S. Securities and Exchange Commission.

Following the investigation, which began early in 2023, Gemini was accused of misleading users by misrepresenting Gemini Earn as a low-risk investment. In response, Gemini reimbursed users with $2.18 billion and settled a separate probe by the U.S. Commodity Futures Trading Commission for $5 million. These resolutions likely influenced Gemini’s decision to pursue a public offering, especially in light of the successful IPO of a similar company, Circle Internet Group Inc., earlier in the same week. Circle, known for issuing the popular USDC stablecoin, raised substantial funding through its public listing, resulting in a significant increase in its stock value on the first day of trading.

Gemini’s latest move to go public underscores the evolving landscape of the cryptocurrency industry and the growing interest in digital assets and financial technology. With the potential for increased investor scrutiny and regulatory oversight, Gemini’s decision to enter the public markets represents a significant milestone in its journey as a key player within the crypto ecosystem.