Gemini to Launch Non-US Crypto Derivatives Platform
American cryptocurrency exchange Gemini has announced the upcoming launch of Gemini Foundation, a crypto derivatives platform for non-US investors that will offer contracts denominated in Gemini dollars (GUSD).
Gemini to Offer Crypto Derivatives Products to Non-US Customers
According to a blog post, the first derivatives contract on the Gemini Foundation platform will be a Bitcoin perpetual contract (BTC/GUSD), with an Ethereum perpetual contract (ETH/GUSD) to launch soon, alongside others.
Gemini Foundation, available to individuals and institutions, will enable customers to leverage their crypto assets to open long or short positions. Eligible users will be allowed to trade spot and derivative products and execute their trading strategies on the platform.
The new platform will be available to users in select locations, including Singapore, Hong Kong, India, Bahamas, Nigeria, Egypt, South Korea, Argentina, and El Salvador. Investors in the US will have no access to the platform.
“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,” the crypto exchange said.
Gemini to Charge All Fees in GUSD
Furthermore, customers can fund their Gemini Foundation account by converting USD and USD Coin (USDC) into GUSD on a 1:1 basis with no additional costs. All perpetual funding payments and realized and unrealized profits and losses (P&L) will be in GUSD. Likewise, all fees will be charged in GUSD.
In addition, the derivatives platform will have default leverage of 20x and maximum possible leverage of 100x.
Gemini’s move comes as several US-based crypto firms are spreading their tentacles to offshore regions amid the regulatory uncertainty in the country. While American regulators try to understand if cryptocurrencies fit into the securities or commodities category, some locations like the UK are making progress with their crypto regulation.
Meanwhile, Gemini is not the only exchange looking to establish its presence outside the US. Coinbase, the largest American crypto trading platform, recently bagged a regulatory license from Bermuda and is set to launch a derivatives exchange in the territory soon.