According to a report by The Information, Gemini, the U.S.-based cryptocurrency exchange founded by Cameron and Tyler Winklevoss, plans to launch a global cryptocurrency derivatives exchange.
The platform would offer perpetual futures, a type of derivative prohibited for retail traders in the United States since it has no expiration date, can be traded with substantial leverage, and is therefore considered a high-risk product.
The announcement was made after the FTX cryptocurrency exchange declared bankruptcy in November and amidst the recent lawsuit filed against Binance by the Commodities Futures Trading Commission (CFTC) for violating U.S. derivatives legislation, among other allegations. Due to the departure of FTX and Binance’s regulatory troubles, a substantial market share in international futures trading may become available.
In addition to Gemini’s intentions, it was revealed earlier this month that top U.S. exchange Coinbase (COIN) was planning to build an international platform to offer perpetual futures. The U.S. Securities and Exchange Commission (SEC) has served Coinbase with a Wells Notice, indicating an imminent enforcement action.
Gemini has reached out to trading companies in recent months to serve as market makers for an international operation; sources told The Information.