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The cryptocurrency exchange Gemini has introduced a tokenized iteration of Michael Saylor’s Strategy (MSTR) stock for users within the European Union, enabling them to invest in the Bitcoin purchasing company onchain.
“Conventional financial infrastructures are challenging to access and require modernization,” Gemini stated in an announcement on Friday.
More tokenized equities and ETFs are on their way to the platform soon
“Tokenized stocks address this concern by providing investors with enhanced access and fewer limitations,” it further noted.
Traditional stock exchanges come with numerous limitations, such as restricted trading hours linked to market time zones, elevated fees for overseas investors, and limited access for individuals in specific areas.
Gemini explained, “onchain stock trading tackles these challenges by delivering a seamless experience all in one place.”
According to Gemini, investors can maintain both crypto and stocks onchain without the necessity of selling on one platform to trade stocks on another.
Gemini collaborated with US public securities provider Dinari to facilitate the service. “By utilizing Dinari’s tokenization-on-demand model, we can provide clients with increased liquidity, transparency, and equivalent economic rights as the underlying security, where permitted,” it clarified.
Although MSTR is the sole tokenized stock currently accessible on Gemini, the exchange indicated that additional tokenized stocks and exchange-traded funds (ETFs) are anticipated to debut “in the coming days.”
The Strategy (MSTR) stock has risen 3.84% over the last 30 days, currently trading at $383.88, as per Google Finance statistics.
On Wednesday, financial analyst Jeff Walton remarked that Strategy has a strong probability of qualifying for the S&P 500, provided Bitcoin (BTC) does not fall below $95,240 prior to the conclusion of the second quarter.
Increasing interest for tokenized equities in Europe
This development coincides with rising interest from various crypto platforms aiming to introduce US-tokenized equities to the European market. Currently, tokenized equities are not available for trading in the US.
On May 8, it was reported that the brokerage fintech Robinhood is reportedly working on a blockchain framework enabling European retail investors to trade US securities.
Related: Coinbase seeks SEC endorsement for ‘tokenized equities’ — Report
Shortly thereafter, on May 23, cryptocurrency exchange Kraken announced its intentions to provide non-US clients the option to trade tokenized US stocks, as part of the firm’s initiative to offer more conventional assets through tokenization.
Meanwhile, cryptocurrency exchange Coinbase is attempting to obtain the necessary approvals in the US. On Tuesday, Coinbase’s chief legal officer, Paul Grewal, reportedly stated that the company was pursuing the approval of the Securities and Exchange Commission (SEC) to offer tokenized equities.
Crypto leaders are optimistic that tokenized equities will significantly expand. Arnab Naskar, STOKR’s CEO, recently expressed that it is challenging to forecast but is “undoubtedly a larger trillion-dollar marketplace.”
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