Cryptocurrency exchange Gemini sold its UK and European operations to Singapore-based stablecoin payments company KAST for less than $10 million. The transaction follows Gemini's February announcement to wind down operations in the UK, European Union, and Australia while reducing its global workforce by approximately 25%. The sale reflects a broader shift in cryptocurrency industry dealmaking, where companies increasingly pursue smaller acquisitions to obtain regulatory access and established business capabilities rather than building from scratch, according to advisory firm Architect Partners data showing $2.2 billion in crypto M&A across 67 transactions in the third quarter.
KAST Acquires Gemini European Infrastructure for Stablecoin Expansion
The acquisition provides KAST with an opportunity to accelerate its expansion into European markets by taking over parts of Gemini's existing regional operations. Founded by former Circle executive Raagulan Pathy, KAST offers financial services built around stablecoins, including accounts, international transfers, and payment cards that allow individuals and businesses to hold, transfer, and spend digital dollars.
The company raised $80 million in a Series A funding round in March, co-led by QED Investors and Left Lane Capital. Licensing and regulatory compliance were among the areas identified for investment. The transaction emerged through a KAST recruitment listing published approximately one month earlier, which sought a European general manager responsible for overseeing the transition of Gemini employees across the UK and European Union.
Neither company publicly disclosed the full terms of the agreement. Gemini declined to comment, while a KAST spokesperson confirmed that the company is actively pursuing acquisitions as its revenue and international footprint grow. Existing licenses do not automatically transfer to a new owner—any relevant change of control remains subject to regulatory review and approval.
Gemini Reduced Workforce 25% in February Restructuring
The sale follows Gemini's February announcement that it would wind down operations in the UK, the EU, and Australia while reducing its global workforce by approximately 25%. The company, founded by Cameron and Tyler Winklevoss, said the restructuring was intended to reduce operating costs and improve its path toward profitability. Its US and Singapore businesses were retained as the company shifted its attention toward markets where it planned to concentrate its operations.
The decision represented a significant reversal of Gemini's earlier international expansion strategy. Rather than continuing to invest in overseas operations, the exchange began scaling back its presence and exploring opportunities to dispose of its existing regional businesses. Potential buyers had previously examined Gemini's European operations, partly because of the regulatory permissions associated with those entities.
Crypto M&A Shifted to Regulatory Access Deals in Q3
The Gemini-KAST transaction reflects a broader change in cryptocurrency industry dealmaking, where companies are increasingly pursuing smaller acquisitions to obtain regulatory access, distribution networks, and established business capabilities. According to advisory firm Architect Partners, crypto-related mergers and acquisitions reached $2.2 billion across 67 announced transactions in the third quarter. That represented an 83% decline in deal value compared with the previous quarter.
For KAST, the Gemini acquisition could provide a foundation for entering European markets while building on its existing stablecoin payment services. For Gemini, the disposal allows the company to continue simplifying its international structure following its decision to withdraw from several overseas markets. Important details remain unresolved, including the exact regulatory entities involved, the number of employees transferring, and when KAST expects to begin operating through the acquired businesses.
FAQ
What did Gemini sell to KAST and for how much?
Gemini sold its UK and European operations to Singapore-based stablecoin payments company KAST for less than $10 million. The transaction gives KAST access to parts of Gemini's existing regional operations without acquiring Gemini's broader business.
Why did Gemini sell its European operations?
The sale follows Gemini's February announcement to wind down operations in the UK, European Union, and Australia while reducing its global workforce by approximately 25%. The company said the restructuring was intended to reduce operating costs and improve its path toward profitability.
