Gemini Rolls Out Tokenized Strategy Shares Across EU

The first tokenized stock made available is for Strategy (NASDAQ: MSTR), a technology firm known for holding a large pile of Bitcoin on its balance sheet. Led by Executive Chairman Michael Saylor, the company’s aggressive BTC accumulation has turned MSTR shares into a popular proxy for Bitcoin exposure, drawing interest from both crypto-native and traditional investors.

Gemini’s decision to prioritize Strategy as the initial tokenized stock offering likely reflects the company's significant Bitcoin holdings, which resonate with crypto-aligned investors. This move enables EU traders to gain exposure to a prominent Bitcoin-related stock through Gemini's platform, bypassing the need for traditional brokerage accounts

According to Gemini and Dinari, each tokenized share is fully backed by a corresponding real share held in custody within third-party brokerage accounts. These tokenized securities are issued under a compliant structure, with Dinari acting as the licensed intermediary. While the blockchain infrastructure supports continuous trading, actual trading hours may vary by platform, with some offering extended access beyond traditional market hours.

Gemini's tokenized stocks are issued on the Arbitrum network, facilitating on-chain verification and interoperability with compatible wallets. The service has been launched for European Union users, aligning with the region's Markets in Crypto-Assets Regulation (MiCA) as Gemini seeks licensing through Malta to operate across all EU member states.

Tokenizing real-world assets (RWAs) has become a significant trend in both DeFi and traditional financial institutions. Industry leaders like BlackRock, Franklin Templeton, and JPMorgan have actively engaged in blockchain-based tokenization of financial products, including bonds and funds. Platforms such as Ondo Finance, Backed Finance, and Matrixdock are facilitating the circulation of tokenized treasuries and other real-world assets, reflecting the growing integration of blockchain technology in asset management.

Tokenized equities, particularly those linked to large-cap U.S. stocks, remain a relatively untapped segment due to regulatory complexities and custodial challenges. Gemini's recent initiative to offer tokenized stocks, beginning with Strategy, marks a significant effort to make this asset class accessible to a broader retail audience within a compliant and regulated framework.

Gemini's recent initiatives underscore its ambition to expand in Europe, a region where regulatory clarity on digital assets is advancing more rapidly than in the U.S. The company is in the process of securing a MiCA license through Malta, which would enable it to offer regulated services across all 27 EU member states. Coinbase and Kraken have already obtained MiCA licenses in Luxembourg and Ireland, respectively, highlighting a broader industry shift toward targeting European markets amid regulatory uncertainties in the U.S.

Gemini has announced plans to expand its tokenized offerings beyond Strategy, with additional tokenized stocks and ETFs expected to launch in the near future. While the company has not disclosed specific assets or sectors, the initiative aims to broaden access to U.S. equities for investors in the European Union.

While tokenized equity trading offers innovative opportunities, it raises important questions about settlement finality, investor protections, and potential regulatory arbitrage. The European Union's MiCA is still being phased in, with national regulators potentially interpreting aspects differently. Gemini asserts that its tokenized securities are fully backed 1:1 and redeemable; however, the degree to which these instruments provide protections equivalent to traditional stocks is yet to be fully determined.

Still, the move is widely seen as a major milestone in the evolution of blockchain-based finance. It offers a glimpse into a future where borders and business hours no longer define access to global markets.