Gemini Credit Card Business Skyrockets as Transaction Losses Soar

Gemini's credit card business has become its largest individual revenue source, surpassing crypto trading in the second quarter.

The company generated $16.2 million from credit cards, more than tripling the previous year's figure and exceeding exchange trading revenue of $12.5 million.

This growth came with a cost, as transaction losses jumped 467% to $20.1 million, while trading volume and assets held on Gemini's platform fell sharply during the quarter.

The company set aside $16.1 million for expected card losses, compared to just $1.7 million in the previous year, and saw a nearly threefold increase in credit card rewards costs from $2.9 million to $8.2 million.