Gemini, the American cryptocurrency exchange owned by the Winklevoss twins, is preparing to launch a new crypto derivatives platform outside of the United States. The new platform, called the Gemini Foundation, will provide traders from over 25 countries with the ability to trade both spot and derivatives products. With a maximum leverage of 100x, traders will have access to a range of trading options.
In a recent blog post, Gemini confirmed that the first product to be launched on the Gemini Foundation will be a BTC perpetual contract denominated in the exchange’s stablecoin, GUSD. The exchange plans to introduce an ETH/GUSD perpetual contract shortly after the Bitcoin product goes live. The Gemini Foundation will be available to customers in countries such as Bermuda, Singapore, India, Hong Kong, Thailand, and Switzerland, among others. However, customers from the United States will not be able to trade on the new offshore derivatives platform.
The GUSD stablecoin will serve as the primary token on the Gemini Foundation. To fund their trading accounts, customers will have to convert their USD and USDC to GUSD on a 1:1 basis. Additionally, all perpetual funding payments will have to be made in GUSD. The fees on the platform, as well as the P&L, will be denoted in Gemini’s stablecoin.
The new offshore crypto derivatives exchange is part of Gemini’s efforts to expand its global footprint. The exchange is among several cryptocurrency firms looking to expand out of the United States due to the hostile treatment of crypto entities by American regulators, including the Securities and Exchange Commission (SEC). Gemini recently announced a new engineering hub in India and named a new CEO for the Asia Pacific region.
Gemini’s expansion into the derivatives market comes at a time when several cryptocurrency exchanges are looking to diversify their offerings. The derivatives market has seen significant growth in recent years, with several exchanges offering leveraged trading options to their customers. Gemini’s move into the derivatives market is expected to be well-received by traders looking for more trading options.
Gemini’s foray into the derivatives market is also expected to bring in more customers to the exchange, especially from countries where the derivatives market is popular. The exchange’s decision to denominate its products in its stablecoin is also expected to boost the adoption of GUSD, which has struggled to gain traction in the highly competitive stablecoin market.
Gemini’s expansion into the derivatives market is a significant step for the exchange, which has been steadily increasing its offerings over the past few years. With the launch of the Gemini Foundation, the exchange is set to become a major player in the global derivatives market.