Nasdaq plans to invest $50 million in the cryptocurrency exchange Gemini, founded by the Winklevoss twins.

Gemini, a cryptocurrency exchange established by the Winklevoss twins, has reportedly forged a strategic investment deal with Nasdaq in anticipation of its initial public offering this week, according to CNBC.

Nasdaq plans to invest $50 million in crypto firms, a partnership that will enable them to offer management services at Gemini for financial institutions’ clients. Additionally, Gemini will be a distribution ally for Nasdaq’s trade management system, Calypso.

As noted by Reuters, this investment is not part of Gemini’s upcoming public offering, which aims to raise up to $317 million and is scheduled for its debut on Nasdaq on Friday.

A spokesperson from Nasdaq commented, “As the regulatory landscape for crypto assets shifts, we are expanding our capacity to serve institutional clients and the wider investment community.” They added that the partnership with Gemini is part of a broader strategy focused on offering multi-casual and staking services while maintaining an open market infrastructure.

The spokesperson further remarked that the investment and partnership approach at Gemini aligns with their typical structure through the Nasdaq venture.

This announcement arrives just a day after Nasdaq submitted a proposal to the Securities and Exchange Commission, looking to amend rules to facilitate trading of tokenized stocks and exchange-sold products. Interest in tokenization has surged recently, and changes in these rules could position Nasdaq as the first major traditional stock exchange to permit trading of tokenized securities.

Tokenization refers to the process of creating digital representations of public securities or real-world assets on a blockchain network, where the holder of the token does not hold complete ownership of the asset itself.

Founded in 2014, Gemini holds more than $21 billion in assets on its platform as of the end of July.