CBA takes stake in major crypto exchange Gemini

The Commonwealth Bank has taken a small stake in global cryptocurrency exchange Gemini in a move that will further the corporate’s position as a leader in the nascent digital asset space.

CBA told investors on Friday it was a participant in the first-ever funding round for the New York-headquartered Gemini, which announced overnight it had raised $US400 million ($550 million), valuing the business at $US7.1 billion.

Gemini is the same exchange CBA recently partnered with to allow its customers to buy and sell crypto through its platform, and the bank confirmed it had made a “small minority investment” in the business via its latest capital raising.

“In looking at ways that we can support our customers, we have made the strategic decision to partner with Gemini, a global leader with strong security and a track record of serving large institutions,” Commonwealth Bank chief executive Matt Comyn said.

“Our investment in Gemini is part of an exclusive partnership in Australia and New Zealand. We congratulate Gemini on the completion of their capital raise, and look forward to working closely with them in the months and years ahead,” he said.

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Gemini is one of the world’s most popular crypto exchanges, founded by the Winklevoss twins of Facebook fame. The business looks after more than $US30 billion in crypto-assets and operates its own marketplace for non-fungible tokens – Nifty Gateway.

“We are incredibly excited to continue to build on the frontier of crypto and give individuals around the world greater choice, independence, and opportunity through crypto,” co-founder Cameron Winklevoss said.

CBA has form in taking stakes in businesses it partners with or that operate in areas closely adjacent to the banking sector, with the company purchasing a stake in buy now, pay later operator Klarna in 2019, which has since boomed in value and is worth more than $2.5 billion.