Gemini sells overseas businesses as Winklevoss exchange cuts costs: Report

Gemini Space Station, the parent company of digital asset exchange Gemini, has sold its UK and European businesses to Singapore-based stablecoin payments firm KAST for less than $10 million, as it continues to scale back its international presence and restructure operations, CoinDesk reported Thursday.

The sale follows Gemini’s February announcement that it would wind down operations in the UK, European Union and Australia and cut approximately 25% of its global workforce.

The company, founded by Cameron and Tyler Winklevoss, retained its US and Singapore businesses as it sought to reduce expenses and move toward profitability.

KAST offers stablecoin-based accounts, international transfers and payment cards for consumers and businesses. The company was founded by former Circle executive Raagulan Pathy and raised $80 million in a Series A round in March, with QED Investors and Left Lane Capital leading the investment. Part of the funding was earmarked for licensing and compliance.

Gemini bets on prediction markets and equities to diversify revenue

Gemini is repositioning itself as a multi-product crypto and financial markets platform, expanding into prediction markets, equities and regulated derivatives as declining spot trading activity puts pressure on its traditional exchange business.

The company introduced event contracts through Gemini Predictions, launched commission-free US stock and ETF trading, and secured regulatory approval for affiliate Gemini Olympus to operate as a derivatives clearinghouse. A pending futures commission merchant application could further expand its offerings to include regulated US crypto perpetual futures.

Its expansion comes as traditional exchange activity weakens and services become a larger contributor to revenue. In the second quarter, Gemini generated $45.5 million in total revenue, up 37% year-over-year, as services revenue climbed 149% to $23.5 million.

Exchange revenue fell 38% to $12.5 million, reflecting lower crypto trading volumes. Services revenue and interest income accounted for 59% of net revenue, compared with 50% in the first quarter. Credit card revenue increased 231% to $16.2 million, while staking revenue grew 50% to $4 million. Prediction markets contributed $500,000 in revenue, with trading volume up 93% quarter over quarter.

The company is looking to build on that growth by expanding distribution beyond its own platform. In August, Gemini signed a letter of intent with Apex Fintech Solutions to make its regulated crypto prediction markets available through brokerage firms.

Gemini Titan would serve as the exclusive regulated venue for crypto event contracts under the proposed arrangement.