- Gemini enters the derivatives market with the launch of BTC/GUSD perpetual contracts
- The new product is available for customers in 30 countries and the firm plans to expand this presence
Crypto exchanges based in the United States have been making headlines for their reported interest in the derivatives side of the crypto market. And, Gemini has officially confirmed its interest by launching a derivatives exchange for overseas customers. The exchange unveiled its new trading platform earlier today on its official social media platform.
It has dubbed its derivatives exchange as ‘Gemini Foundation’. Moreover, this platform will feature the trade of Bitcoin (BTC) perpetual contracts, paired with the Gemini Dollar (GUSD). It will extend support for the second largest cryptocurrency – Ethereum (ETH), which will also be paired with GUSD, in the near future.
Gemini leads in the race to launch a derivatives exchange
Notably, this is not the first time for a US-based crypto entity to take the spotlight in the derivatives market. The reports of this imminent launch first circulated in the market last month.
Furthermore, the services will be available to customers from 30 countries. This includes India, South Korea, Switzerland, Thailand, Hong Kong, Singapore, the Bahamas, and Isreal. Additionally, eligible customers from these regions will have access to both spot and derivatives exchanges.
Gemini also highlighted that the services will not be available to customers from the United States, its home base. The message comes in as the United States has banned the participation of US traders in the derivatives market. This is mainly because crypto perpetual contracts do not have an expiration date and their leverage size are usually high.
A blog post on the announcement read,
“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.”
Subsequently, Coinbase – another leading crypto exchange – has, time and again, made headlines for its interest in the derivatives market. A recent report stated that the US-based crypto firm could launch a derivatives exchange overseas as soon as next week. Subsequent reports claimed that the exchange was already in talks with its institutional investors and market makers regarding the matter.
With Gemini now entering the market, it places itself as a direct competitor to Binance – the world’s largest crypto exchange by market cap. The exchange has been solely reigning over the market for the past couple of months, after its previous competitor FTX went under in November 2022.