- Gemini plans to launch a global platform for cryptocurrency derivatives trading, specializing in perpetual futures.
- Recent developments in the industry, including the bankruptcy of FTX and regulatory issues for Binance, create market opportunities.
- Coinbase is also considering launching an overseas platform for perpetual futures but faces regulatory challenges.
According to a report by The Information, Gemini, a cryptocurrency exchange established by Cameron and Tyler Winklevoss in the United States, is planning to introduce a global platform for cryptocurrency derivatives trading.
Gemini’s proposed platform is said to specialize in perpetual futures, which is a type of derivative banned for retail traders in the U.S. due to its lack of an expiration date and high leverage, making it a highly risky product.
Gemini’s plan to launch an international cryptocurrency derivatives exchange comes in the wake of significant developments in the crypto exchange industry. This includes the bankruptcy of the FTX crypto exchange in November and the recent lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC) against Binance for violating U.S. derivatives law. With FTX’s exit and Binance’s regulatory issues, there may be a significant market share available in the international derivatives trading industry.
Similarly, Bloomberg reported that Coinbase, a major U.S.-based cryptocurrency exchange, is also considering the launch of an overseas platform that would provide perpetual futures.
However, Coinbase has its own regulatory challenges to contend with, as it recently received a Wells notice from the U.S. Securities and Exchange Commission (SEC), indicating that enforcement action is likely on the horizon.
Sources familiar with the matter have reported that Gemini has been making efforts in recent months to contact trading companies and invite them to serve as market makers for its international operations.