Gemini Expands US Dollar Payment Rails for European Institutions

Gemini, the prominent cryptocurrency exchange founded by Cameron and Tyler Winklevoss, is expanding its offerings for institutional clients in Europe by introducing US dollar payment support. This new functionality, aimed at streamlining the trading experience for European institutional investors, will allow direct US dollar transactions on the platform, enhancing liquidity and ease of access for crypto traders.

Expansion of USD Payment Support Across Europe

Gemini has partnered with Liechtenstein-based Bank Frick to enable US dollar payment rails for institutional clients in the United Kingdom and Switzerland. This collaboration, announced on March 12, marks a significant step in Gemini’s strategy to broaden its services for European institutional customers.

Mark Jennings, Gemini's head of Europe, confirmed that the company plans to extend US dollar payment functionality to institutional clients across the European Union (EU) and the European Economic Area (EEA) in the coming weeks. Additionally, the feature will be available to users in Gibraltar, Jersey, Guernsey, and the Isle of Man.

Direct US Dollar-to-Crypto Trades for Institutions

The new functionality will allow institutions to deposit and withdraw US dollars to and from their Gemini accounts without incurring any fees. Importantly, this feature also enables institutional clients to directly trade with US dollars on the platform, bypassing the need to convert funds into local currencies such as the British pound or euros.

By enabling direct USD-to-crypto trading pairs, Gemini seeks to remove friction for institutional traders and make the crypto trading experience more seamless and efficient. According to Jennings, with institutional interest in cryptocurrency growing rapidly in recent years, having US dollar rails in place is essential for providing a frictionless and seamless trading experience.

Bank Frick’s xPulse Service to Facilitate US Dollar Deposits

For deposit services, Gemini will leverage Bank Frick’s instant transfer service, known as xPulse, which provides 24/7 fiat on-ramp capabilities for institutional clients with accounts at Bank Frick. This integration ensures that institutional customers can swiftly fund their Gemini accounts with US dollars, further enhancing the user experience.

Gemini’s Regulatory-First Approach

Gemini’s new US dollar payment functionality will be provided through its own entities, which hold Electronic Money Institution (EMI) licenses. This regulatory-first approach sets Gemini apart from many other crypto asset service providers (CASPs), who often rely on third-party partnerships for payment processing.

Unlike competitors, Gemini’s EMI licenses allow it to directly offer seamless funding solutions for its institutional users, eliminating the need for reliance on external partners for US dollar transactions. This regulatory advantage underscores Gemini's commitment to providing a secure and compliant platform for institutional crypto trading.

A Competitive Edge in the European Market

Gemini’s move to offer US dollar payment rails for European institutional customers places it in a competitive position within the European crypto market. While other exchanges, such as Coinbase, have offered US dollar trading pairs for European clients since 2019, Gemini’s regulatory approach, coupled with the ability to support USD deposits and withdrawals without fees, positions it as a strong contender for institutional crypto business in the region.

Coinbase, for example, launched US dollar trading pairs for its European customers through Coinbase Pro and Coinbase Prime, though it halted its Pro service in 2023.

Gemini’s Broader Ambitions

This new development comes shortly after reports suggesting that Gemini is preparing for an Initial Public Offering (IPO) in the United States. Sources from Bloomberg indicate that the exchange could launch its IPO as soon as this year, with major firms such as Goldman Sachs and Citigroup potentially involved in the process.

Gemini has been eyeing a public listing since at least 2021, even reportedly considering a merger with the now-bankrupt Digital Currency Group (DCG). As the exchange continues to expand its global services and strengthen its regulatory compliance, the potential IPO could further cement its status as a leading player in the cryptocurrency industry.

Conclusion

With the introduction of US dollar payment rails for European institutional clients, Gemini is positioning itself as a key player in the growing institutional crypto market in Europe. By offering seamless and fee-free US dollar deposits and direct USD-to-crypto trading pairs, Gemini is enhancing its platform’s appeal to institutional investors who seek efficiency and reliability. As the company moves forward with its IPO plans, Gemini’s continued expansion and regulatory-first approach will likely make it a significant force in the global cryptocurrency exchange market.