Gemini Eyes IPO in 2024 After $1.1B Payout Deal: Report

• Gemini is exploring an IPO this year, with discussions ongoing but no final decision yet.
• The firm has agreed to return $1.1 billion to customers through the Genesis bankruptcy process.
• Gemini settled a $5 million CFTC lawsuit without admitting liability.

Cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss, is considering going public this year, according to Bloomberg sources. The company is reportedly in discussions with potential advisers, though no final decision has been made.

If successful, Gemini’s IPO will mark a significant step towards a growing intersection of traditional finance and cryptocurrencies. Winklevoss twins, with a long background in early days at Facebook and then strong affiliations with the community in cryptocurrencies, have positioned Gemini in a strong position in the marketplace.

The firm both deals with and holds assets for, and exchanges with, both institution and retail investors. Cryptocurrency companies desire greater financial legitimacy in an environment in transition for regulators, and that is spurring consideration for an IPO.

Regulatory Battles and Financial Settlements

The company has faced its share of legal challenges in recent years. The firm recently settled a lawsuit with the Commodity Futures Trading Commission (CFTC), agreeing to pay a $5 million penalty. The case revolved around allegations that Gemini misled regulators while attempting to launch the first U.S.-regulated Bitcoin futures contract.

The company resolved the dispute at an early stage in the current year, neither denying nor acknowledging liability. Gemini’s “Earn” scheme was hurt by Genesis Capital’s failure to lock in user funds. In a settlement, Gemini agreed to pay a minimum of $1.1 billion to affected users.

Gemini Political Ties and Industry Impact

The broader cryptocurrency community saw increased political momentum, most recently with the election of Donald Trump, whose administration saw strong support for the community. In particular, the Winklevoss twins donated Bitcoin to Trump’s campaign, with part of the gifts having to be returned in compliance with legal restrictions.

The company’s potential IPO aligns with a trend of crypto firms seeking public listings. Peter Thiel-backed Bullish Global is also reportedly considering an IPO, reflecting a larger shift toward institutional acceptance of digital assets. If the company moves forward with its public listing, it could set a precedent for other crypto companies looking to enter mainstream financial markets.

With over 500 workers in its international offices in New York, Seattle, Singapore, London, Dublin, and India, Gemini’s expansion drive seems to have placed it in a position for long-term expansion. An IPO is not yet guaranteed, but its potential contribution to the crypto marketplace could be significant.

Related Reading | What is Curacao’s Role in Regulating Crypto Casinos?