Gemini sells overseas businesses as Winklevoss cuts costs: Report

Gemini reported $45.5 million in total revenue in the second quarter, up 37% year over year, while exchange revenue fell 38% to $12.5 million. The divergence shows how the crypto exchange is reducing its reliance on spot trading by building a broader financial-markets business.

Services revenue climbed 149% to $23.5 million. Services and interest income together accounted for 59% of net revenue, compared with 50% in the first quarter, shifting more of Gemini’s revenue base away from traditional exchange activity.

The source headline also said Gemini was selling overseas businesses as the Winklevoss exchange cut costs. The accompanying text did not identify the Gemini businesses or jurisdictions involved, the Winklevoss business line affected, or any cost-savings figure, so the scale of either action cannot be assessed from the available account.

What products are driving Gemini’s diversification?

Gemini launched event contracts through Gemini Predictions and commission-free U.S. stock and ETF trading, the report said. The company also secured regulatory approval for affiliate Gemini Olympus to operate as a derivatives clearinghouse.

Gemini is repositioning itself as a multi-product crypto and financial-markets platform, using equities, event contracts and regulated derivatives to offset pressure from declining spot activity. That mix broadens its product set and makes revenue more dependent on service economics, card activity and distribution beyond Gemini’s own platform.

A pending futures commission merchant application could further extend Gemini into regulated U.S. crypto perpetual futures, according to the report. Gemini Olympus provides the clearing structure, while an approved futures commission merchant registration would put the perpetual-futures product within a regulated operating framework. The application remains pending.

Which businesses are growing fastest?

The second-quarter figures in the report show where diversification was already producing revenue:

• Credit card revenue increased 231% to $16.2 million in the second quarter.
• Staking revenue grew 50% to $4 million.
• Prediction markets contributed $500,000 in revenue, and trading volume rose 93% quarter over quarter.

Exchange revenue declined as lower crypto trading volumes reduced activity, according to the report. Even with that 38% fall to $12.5 million, Gemini reported 37% year-over-year total revenue growth as services and card revenue expanded.

Among the disclosed product lines, prediction markets remained the smallest contributor at $500,000, but 93% volume growth gives the unit a base for wider distribution.

What would the Apex arrangement change?

In August, Gemini signed a letter of intent with Apex Fintech Solutions to make its regulated crypto prediction markets available through brokerage firms, according to the report. Gemini Titan would serve as the exclusive regulated venue for crypto event contracts under the proposal.

For Apex, the arrangement would add regulated crypto event contracts to its brokerage offering; for Gemini, it would extend access beyond its own platform. Gemini Titan would remain the exclusive regulated venue within that channel. The source gave no implementation date, financial terms or committed trading volume, so the agreement remains a distribution plan rather than a disclosed revenue contract.

What does KAST’s $80 million Series A fund?

KAST offers stablecoin-based accounts, international transfers and payment cards for consumers and businesses, the report said. The company was founded by former Circle executive Raagulan Pathy.

Pathy’s company 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.

The financing gives KAST capital to expand those account and payment services while covering licensing and compliance work. Its product set links crypto balances with transfers and card spending, targeting both consumer and business payment flows.

Gemini’s next market-structure test is the pending futures commission merchant review and whether the Apex letter of intent becomes an operating agreement; until then, its broader revenue mix rests on products already generating revenue.