The Rise of Tokenized Equities in Web3: A New Frontier for the EU Market
The tokenization of traditional equities is rapidly transforming how investors engage with financial markets, especially within the web3 space. Major exchanges such as Kraken, Bybit, Gemini, and OKX, along with Solana and BNB blockchains, have begun offering tokenized stocks. This evolution reflects a broader trend of merging traditional finance with cryptocurrency, making it accessible to a more diverse audience. In an exclusive interview, Claudio Bedino, Gemini’s Head of Consumer Growth for Europe, elaborates on the motivations behind this surge and how European users are responding to these offerings.
The Motivation Behind Tokenized Equities
Gemini officially launched its tokenized equity service on June 27, highlighting MicroStrategy (MSTR) as its inaugural tokenized stock available for eligible EU customers. Bedino explains that Gemini believes in the potential of cryptocurrency as the "future of finance," aiming to make it accessible to all. By entering this market, Gemini seeks to lower barriers and democratize access to global equity markets, which have historically been gated by significant barriers. With tokenized equities, users can buy and sell digital representations of company shares directly from their Gemini accounts without needing a brokerage. This approach embodies the core tenets of crypto: openness, accessibility, and efficiency.
User Reception in the EU
The response to Gemini’s tokenized equities has been overwhelmingly positive. As brought to light in recent data, the number of unique crypto wallets holding tokenized stocks on Solana increased sharply from 788 to 42,940—an impressive growth of 5,349% within a month. While specific metrics remain confidential, Bedino noted a growing interest from both existing customers and newcomers. The total market value of tokenized stocks now exceeds $417 million, with over 57,000 holders. With Solana capturing over 20% of this market, the demand for tokenized equities is evidently rising.
The Future of the Tokenized Equity Market
While the tokenized equity landscape is burgeoning, it remains in its infancy. Regulatory frameworks and classification of tokenized stocks continue to evolve globally, indicating that there is much room for development. Bedino mentioned Gemini’s plans for enhancing user experience, aiming to expand its selection of tokenized equities to mirror traditional financial markets more closely. Currently offering over 35 stocks, including well-known brands like Apple and Amazon, Gemini aims for 24/7 trading access in the future, a significant improvement over current market hour restrictions.
Demands of EU Crypto Users
Beyond the introduction of tokenized equities, Bedino emphasized that trust is a cornerstone for EU users in the crypto space. Established in 2015, Gemini’s reputation for safety and regulatory compliance is crucial for user confidence. With various licenses across Europe, including VASP licenses and an EMI from Ireland, Gemini is well-positioned to meet the demands of the market. Additionally, users prefer uncomplicated, reliable products and a seamless user experience. Gemini has taken significant steps in this regard, introducing new payment methods and enhancing their mobile app for easier navigation.
The Need for Innovative Solutions
As Europe enjoys high cryptocurrency adoption—one in five individuals in France and Italy owns crypto—utility and innovation are increasingly essential. Users are looking for ways to leverage the benefits of crypto, whether through tokenized equities or tools for investing their crypto holdings. As the DeFi ecosystem grows, customers will expect more avenues for generating yield, such as staking or derivatives. Continuous innovation will be required to keep pace with these evolving expectations.
Conclusion
The tokenization of equities is reshaping the dynamics of both the crypto and traditional financial landscapes. With exchanges like Gemini spearheading this movement, the potential for democratized access to financial markets has never been more attainable for European users. As demand rises and regulatory frameworks become clearer, the future of tokenized equities appears bright, marking a new era in financial inclusion and accessibility.
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