Crypto Exchange Gemini Hits $ 7.1 Billion Valuation

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Gemini raises $ 400 million to facilitate access to the next iteration of the Internet. Gemini has a smaller user reach than its crypto counterparts, which puts it further behind its competitors. Insider Intelligence publishes hundreds of information, charts and forecasts on the Fintech industry. Learn more about how to become a customer.

The news: The US-based crypto exchange has reached a valuation of $ 7.1 billion, and it will use the funding to grow globally and facilitate access to the metaverse adopted by Meta (formerly Facebook). It’s no surprise: its founders, the Winklevoss twins, have an infamous rivalry with Zuckerberg.

Coinbase is the main platform used to buy cryptocurrencies. Insider Information

What’s the call? Launched in 2015, Gemini has grown rapidly as it facilitates exposure of retail and institutional investors to cryptos.

The exchange supports more than 60 cryptos and holds more than $ 30 billion in custody thanks in part to expanding its services beyond commerce.

Gemini Earn, which allows users to earn up to 7.4% APY by lending cryptos to institutional borrowers, has generated more than $ 4 billion in loans since its launch in February. The Gemini credit card, which will offer real-time crypto rewards, has a waiting list of 360,000 people. And Nifty Gateway, the NFT marketplace it acquired in 2019, has more than $ 420 million in sales.

Gemini sets itself apart from its competitors by adopting a compliance-driven approach to growth. It was the first regulated exchange in the United States and one of the first five registered exchanges in the United Kingdom. Coinbase and others, meanwhile, are best known for being in the crosshairs of regulation.

Looking Ahead: Despite the high valuation, Gemini has a smaller user reach than its crypto peers, which puts it at a disadvantage as they all rush to become the financial gateway to the metaverse.

Coinbase also plans to expand its crypto wallet beyond trading so that users can interact with metaverse-related products such as DeFi solutions and NFTs. The exchange starts from pole position: 61.8% of cell phone users in the US and UK used Coinbase to buy crypto in March, compared to just 8% for Gemini. And the waitlist for its NFT marketplace, which is expected to launch before the end of this year, topped 1.5 million people within two days of its announcement. FTX, which was founded two years after Gemini, reached a valuation of $ 18 billion this summer and also plans to expand its reach into the Metaverse. And Consensys has just raised $ 200 million for the same purpose and can count on institutional support from HSBC and JPMorgan.

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