Nexo is buying Vauld, marking more DeFi consolidation

4

Gemini

Power Score: 39.51

Momentum Score: 63.53 (4)

HQ: New York, NY

CEO: Tyler Winklevoss

On Power

Founded by Facebook foes Cameron and Tyler Winklevoss in 2014, Gemini joined the outside funding party that most crypto firms took part in at the end of 2021 and locked in a valuation of $7.1 billion . The company has put an emphasis on compliance as a differentiator , especially as Binance and others have come under increased regulatory scrutiny. That focus on trust led the company to receive the highest marks in the KYC/transaction risk category of a CryptoCompare analysis, a factor that’s becoming increasingly important to future growth due to European rule changes . In 2020, the company hired Elena Hughes from Morgan Stanley, who now leads a 40-plus-person compliance team as the company has worked to expand into new markets. The company’s early registration with the FCA in the U.K. has meant that, even as regulation has changed, the company has managed to avoid some of the tumult facing the other companies operating inside the territory.

On Disruption

Gemini has pulled out a number of plays from the traditional financial services playbook and is running them with a new-age approach. In particular, the company acquired and subsequently launched under its own heading a credit card business that allows users to earn crypto rewards. The founders have also been bullish on the development of the metaverse, outlining plans for the company to go all in on building metaverse infrastructure out of which the crypto business can operate. That said, the company is also targeting more traditional expansion throughout Asia, Africa and South America.

Tea Leaves

Gemini recently launched a full-service crypto prime brokerage following its acquisition of Omniex, thereby positioning the company to further grow interest among institutional investors. And the company was able to secure FINRA broker-dealer approvals for one of its subsidiaries in January of this year. The designation could allow for significant expansion of Gemini’s business into public offerings and more traditional securities trading.

They Said It

“ @potus ’s executive order on crypto is a watershed moment. It paves the way for thoughtful national crypto regulation that will allow builders to build onshore and ensure that the US remains a leader in crypto — creating greater independence, choice, and opportunity for all.” – Cameron Winklevoss in a March 2021 tweet

Return to the Crypto Exchanges Power Index here .