Kaiko powers Gemini’s derivatives platform with Benchmark Reference Rates.

June 4th, 2024

Kaiko is thrilled to announce its partnership with Gemini, a leading cryptocurrency exchange and custodian.

Kaiko is thrilled to announce its partnership with Gemini, a leading cryptocurrency exchange and custodian. Gemini Foundation, Gemini’s crypto derivatives trading platform, will be using Kaiko Benchmark Reference Rates for its derivatives trading platform.

Gemini Foundation provides derivatives trading in multiple jurisdictions globally. Gemini first launched with perpetual contracts and plans to expand to offer dated futures and options soon.

Gemini’s derivatives contracts empower users to leverage trades on a variety (a current list of 12) of assets including  BTC, ETH, and SOL, without the need to own the underlying asset. Instead, users’ portfolios are valued in GUSD, Gemini’s own stablecoin.

A dependable pricing mechanism must be in place to establish a fair value for a specific cryptocurrency in GUSD. However, a single crypto asset often trades on various exchanges with varying prices due to factors like market liquidity, making it challenging to determine a consensus price.

This is where reference rates play a crucial role. Gemini opted for Kaiko’s Benchmark Reference Rates which aggregate pricing data from the vetted exchanges and uses a robust methodology to calculate a price most representative of fair market value. Each rate is calculated in real-time (every 5 seconds), as well as being published as a daily fixing covering three different time zones: London (16:00 UTC), Singapore (08:00 UTC), New York (20:00 UTC).

The reference rates help Gemini provide a reliable and stable derivatives platform by offering fair market prices that represent the global markets while mitigating the effects of sudden and unexpected price movements that occur in isolation and are temporary.

Neil Sheppard, Head of Derivatives at Gemini added “We are committed to providing our users with reliable and comprehensive market data, empowering them to make informed trading decisions in the cryptocurrency derivatives market”, “By leveraging Kaiko’s robust data solutions, we are further enhancing the trading experience on Gemini, reaffirming our position as a leading platform for institutional and retail traders alike.”

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