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 reduce its international footprint and restructure its operations, CoinDesk reported Thursday.
The sale comes after Gemini announced in February that it would wind down operations in the UK, European Union and Australia, and eliminate approximately 25% of its global workforce.
Founded by Cameron and Tyler Winklevoss, the company kept its US and Singapore businesses as it sought to cut expenses and move toward profitability.
KAST provides stablecoin-based accounts, international transfers and payment cards to consumers and businesses. Founded by former Circle executive Raagulan Pathy, the company raised $80 million in a Series A round in March, led by QED Investors and Left Lane Capital. Some of the funding was earmarked for licensing and compliance.
Gemini turns to prediction markets and equities to diversify revenue
Gemini is recasting itself as a multi-product crypto and financial markets platform, moving into prediction markets, equities and regulated derivatives as weaker spot trading activity weighs on its traditional exchange business.
The company launched event contracts through Gemini Predictions, introduced commission-free trading in US stocks and ETFs, and won regulatory approval for affiliate Gemini Olympus to operate as a derivatives clearinghouse. A pending futures commission merchant application could expand its offerings further to include regulated US crypto perpetual futures.
The expansion comes as activity on traditional exchanges wanes and services account for a growing share of revenue. Gemini reported total second-quarter revenue of $45.5 million, up 37% year over year, while services revenue rose 149% to $23.5 million.
Exchange revenue declined 38% to $12.5 million, reflecting lower crypto trading volumes. Services revenue and interest income made up 59% of net revenue, compared with 50% in the first quarter. Credit card revenue rose 231% to $16.2 million, and staking revenue increased 50% to $4 million. Prediction markets generated $500,000 in revenue, with trading volume up 93% quarter over quarter.
Gemini aims to build on that growth by extending distribution beyond its own platform. In August, it signed a letter of intent with Apex Fintech Solutions to offer its regulated crypto prediction markets through brokerage firms.
Under the proposed arrangement, Gemini Titan would be the exclusive regulated venue for crypto event contracts.
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