Gemini Launches a Non-US Derivatives Platform: All You Need to Know
- Crypto exchange Gemini has announced a new derivatives platform that will be based outside the United States and serve customers from other countries.
- Initially, the default leverage set on the platform will be 20x, while the maximum leverage that can be selected by a customer will be 100x.
- Some of the countries that can access the platform are Singapore, Hong Kong, India, Argentina, the Bahamas, Bermuda, Bhutan, Brazil, El Salvador, and more.
- The first derivatives contract that Gemini Foundation will offer to its customers will be the Bitcoin (BTC) perpetual contract denominated in Gemini Dollar (GUSD).
Popular crypto exchange Gemini plans to increase its presence worldwide after the regulatory conditions in the United States worsened due to the Securities and Exchange Commission (SEC) displaying behavior unfavorable for the growth of crypto. According to a recent announcement, the American crypto exchange has launched a new derivatives platform that will be based outside the region and serve customers worldwide.
As per the announcement, the official name for the non-US derivatives platform is Gemini Foundation, and it will support a maximum leverage of up to 100x. Interestingly, the default leverage set on the platform will be 20x. The platform will be available to customers outside the US.
“Gemini Foundation will offer customers a capital-efficient, highly available, and trusted venue to trade derivatives. Purpose-built for both individuals and institutions, Gemini Foundation combines powerful trading tools with an elegant user experience. Whether you’re a professional trader or just getting started, Gemini Foundation is designed to help you succeed,” read the announcement.
More importantly, the countries whose citizens can opt for the services of the Gemini Foundation include Singapore, Hong Kong, India, Argentina, Bahamas, Bermuda, the British Virgin Islands, Bhutan, Brazil, the Cayman Islands, Chile, Egypt, El Salvador, Guernsey, Israel, Jersey, New Zealand, Nigeria, Panama, Peru, the Philippines, Saint Lucia, Saint Vincent and Grenadine, South Africa, South Korea, Switzerland, Thailand, Turkey, Uruguay, and Vietnam.
The first derivatives contract that Gemini Foundation will offer to its customers will be the Bitcoin (BTC) perpetual contract denominated in Gemini Dollar (GUSD), followed shortly after by an Ether (ETH) perpetual contract also dominant in GUSD.
It is crucial to note here that the collapse of the former multi-billion dollar crypto exchange has left a void in the crypto sphere that multiple exchanges are trying to capitalize on. As reported earlier by Bitnation, Gemini announced that it plans to expand in the Asia-Pacific region and has established an office in Gurgaon, India. The crypto exchange is also hiring people from the country for key roles like human resources, frontend engineers, and other positions.
A Twitter user pointed out that US crypto exchanges are being met with hostility and are being treated unfairly. The user believes that FTX’s implosion created “an opportunity for other exchanges to gain market share, Gemini and Coinbase have an edge as household names in the crypto space when it comes to entering the derivatives market.”
The eligible customers on Gemini Foundation will be able to trade both spot and derivatives products and convert US dollars and Circle’s USDC stablecoin into GUSD on a 1:1 basis. All the fees and losses will be processed in GUSD.
Additionally, unlike traditional futures contracts, perpetual contracts never expire, and these are not regulated by the Commodity Futures Trading Commission. As a result, the exchanges offering crypto futures contracts, like BitMEX, are not available for US customers. Recently, the founders of BitMEX, Arthur Hayes, Ben Delo, and Samuel Reed, were indicted by US regulators for providing services to American customers.
As earlier reported by Bitnation, Tyler and Cameron Winklevoss, the twin co-founders of Gemini, provided a $100 million personal loan to the exchange as the firm suffered heavy damages during the bearish run in the crypto market in 2022.