Amidst ongoing regulatory challenges in the United States, the Winklevoss twins have intensified their efforts to expand Gemini’s offerings to non-US residents. Their new service, Gemini Foundation, aims to cater to both retail and institutional traders, excluding those from the UK and EU. Launched on May 1st, the non-US derivatives platform is now available in 29 jurisdictions, including Singapore, Hong Kong, India, Argentina, Bahamas, and several other countries.
At its launch, Gemini Foundation offers BTC perpetual contracts denominated in Gemini dollars (GUSD) with up to 100x leverage. Plans are in place to introduce an ETH/GUSD perpetual contract in the coming weeks. This expansion outside of the US signifies a crucial stage for the company as it joins other crypto businesses seeking opportunities beyond their home country. Despite this move, the Winklevoss twins express their hope to launch a derivatives product in the US eventually.
Gemini has long worked with regulators in the United States since its establishment in 2014. A year later, the company received a trust charter from the New York Department of Financial Services (NYDFS). However, in 2022, they faced a significant operational challenge when the Commodity Futures Trading Commission (CFTC) sued the company, accusing it of making “false and misleading statements” as they launched the first US-regulated Bitcoin futures contract in 2017. Furthermore, the Securities and Exchange Commission (SEC) charged Gemini and Genesis with the unregistered offer and sale of securities, targeting their Gemini Earn lending service, a yield-bearing product trusted by thousands of US investors.
In addition to Gemini’s new division, the company has also shifted its focus to Asia. After expanding to Singapore, they announced their plans to establish a new engineering hub in Gurgaon, India. The products and features developed there could be utilized by institutional and retail clients in over 70 nations. The newly-formed team, led by the recently appointed CEO of Gemini Asia Pacific, Pravjit Tiwana, will focus on developing next-generation web and mobile user experiences, as well as introducing feature sets for NFT and crypto marketplaces.
Overall, Gemini’s offshore expansion and Asian pivot are strategic steps to position the company as a global player in the crypto market. On the one hand, the company aims to grow by reaching out to clients in regions with favorable regulations. On the other hand, they face challenges in their home country with existing regulatory constraints. Only time will tell if Gemini’s efforts will yield the desired results, and if the Winklevoss twins can realize their ambition of launching a derivatives product in the US market.