Gemini Brings Tokenized Stocks to EU Investors

Leading crypto platform Gemini has just launched a tokenized stock service specifically for investors based in the European Union.

This move is part of Gemini’s strategy to expand its digital asset offerings while bridging the world of traditional investment and blockchain technology.

The service allows users to buy a portion of the shares of well-known public companies in the form of tokens on the blockchain network, making transactions faster, more transparent, and more accessible.

Strategic Collaboration with Bakkt and Eventus

Based on information we quoted from Beincrypto media, to realize this project, Gemini is working with a number of strategic partners, including Bakkt and Eventus.

Bakkt will play a role in managing digital assets and liquidity, while Eventus provides compliance and market surveillance solutions.

With this collaboration, Gemini seeks to ensure that this tokenized stock service meets strict regulatory standards while being able to provide a safe investment experience for its users in Europe.

Wider Access to Traditional Assets

Stock tokenization allows investors to buy small fractions of popular stocks such as Apple, Tesla, and Amazon without having to spend a lot of capital.

In the conventional model, retail investors are often constrained by minimum costs to buy whole shares. However, through tokens, share ownership becomes more affordable and flexible.

In addition, the transaction process can be carried out almost instantly through the blockchain, unlike the traditional stock market settlement mechanism which usually takes longer.

Regulatory Compliance is a Main Focus

Gemini emphasized that this launch complies with the regulatory framework in force in the European Union, including anti-money laundering (AML) and know your customer (KYC) regulations.

All users are required to verify their identity before being able to access the tokenized stock service.

Compliance is one of the main pillars that makes Gemini quite trusted by regulators, so that this platform can develop digital financial innovations without violating applicable laws.

The Future of Stock Tokenization in the European Market

Gemini’s move is considered an important driver of the tokenization trend in the European region.

With more and more financial technology companies bridging traditional and digital assets, the potential for adoption of blockchain-based investments is expected to continue to grow.

However, a number of parties also warned of challenges, especially in market education and ensuring users understand the risks of investing in tokenized assets.

However, for Gemini, this innovation is a concrete effort to create broader financial inclusion.