The US dollar strengthened against the Canadian dollar in early European trade on Friday, with USD/CAD trading near 1.376. The pair is on track for its biggest weekly advance in more than two months, supported by firmer energy prices and the resulting increase in inflation expectations, which have reinforced the case for tighter US monetary policy later this year.
Market attention remains fixed on the second day of talks between US President Donald Trump and Chinese President Xi Jinping in Beijing. The discussions have centered on efforts to ease tensions in the Middle East and restore access to the Strait of Hormuz, a critical shipping route that has been disrupted since the conflict escalated in late February.
Trump said the visit produced substantial trade agreements and suggested that progress was made on a range of geopolitical issues. Xi was also described as having offered support for efforts to negotiate an end to the war with Iran and to keep maritime trade flowing through the region. Even so, risk sentiment remains fragile, which has helped sustain demand for the dollar as a defensive currency relative to the Canadian dollar.
Recent US inflation figures have added to that support. Data that came in hotter than expected have strengthened the view that US interest rates may need to remain elevated for longer. Futures markets now imply a higher chance of at least one more rate increase by the Federal Reserve at its December meeting, compared with expectations a week ago.
In Canada, the Bank of Canada’s latest meeting minutes indicated that policymakers believe they have room to remain patient. Officials decided to look through a temporary jump in headline inflation driven by global energy shocks. Governor Tiff Macklem has also signaled that any future policy moves are likely to be modest, although the direction of rates remains uncertain.Gemini reported first-quarter 2026 revenue of $50.3 million, a 42% increase from a year earlier, as the crypto firm continued its shift from a trading platform into a broader financial services business. The results reflected stronger contributions from consumer products even as core exchange activity weakened.
Transaction revenue held steady at $24 million, but exchange revenue fell 27% year over year to $17.2 million. Gemini said the decline reflected reduced spot trading activity and softer market volumes across digital assets. Total trading volume also dropped sharply, sliding to $6.3 billion from $13.5 billion in the same period last year.
The clearest growth area was the company’s credit card business. Revenue from that segment climbed nearly 300% to $14.7 million, supported by rapid expansion in the Gemini Credit Card user base. Services and interest income, much of it tied to that product line, now account for almost half of Gemini’s total revenue, underscoring how central the company’s consumer finance push has become.
Gemini began broadening beyond crypto trading in 2021, when it introduced products aimed at everyday financial activity. That strategy has since become a key part of its business model, with management signaling that diversification should continue to drive growth in the quarters ahead.
The expansion came with a heavier cost base. Total operating expenses rose 73% to $144.5 million, driven mainly by compensation, marketing, and credit card-related spending. As a result, Gemini posted an adjusted EBITDA loss of just under $60 million for the quarter.
The company also said it completed a $100 million strategic investment from Winklevoss Capital in exchange for 7.1 million common shares, with the funding provided in Bitcoin . In April, Gemini secured a Derivatives Clearing Organization license from the US Commodity Futures Trading Commission, giving it both a designated contract market and a clearing license in-house. That development moves the firm closer to its goal of becoming a full-service marketplace for crypto trading, futures, options, and prediction markets.
Gemini shares rose 6.9% on Thursday to $5 in after-hours trading, though the stock remains down 47% so far this year.
