Gemini plans to enter the derivatives market
- They are preparing a new product - open-ended futures
- The platform will operate outside the US
- After the collapse of FTX, the niche remains vacant
US cryptocurrency exchange Gemini is preparing to launch an international derivatives exchange. This is reported by The Information, citing insiders. Gemini's management has been working with market makers to conduct overseas transactions for the past few months.
The new platform will offer perpetual futures to customers. This type of derivative is banned in the US for retail trading. These contracts have a high level of risk as they can be leveraged and have no expiry date. Perpetual futures have been a hallmark of the international FTX platform.
Gemini has not officially confirmed information on the launch of the new exchange. But in the wake of FTX's bankruptcy and Binance's troubles, other brands have had a chance to carve out a niche in the market, analysts wrote. This includes the international derivatives market.
Coinbase had previously announced plans to launch a similar service. But now the company has more important issues to deal with - they need to prepare for possible courts with the SEC.
However, Gemini has also had a tough time. Gemini Earn customers suffered because of the bankruptcy of cryptocurrency lender Genesis. They were unable to withdraw funds from their accounts. Now Genesis and Gemini have reached an agreement on how to resolve the problem. To do so, DCG (the parent company of Genesis) will exchange its $1.1bn bond for Genesis convertible preferred shares.