Gemini Supercharges Cross-Collateral with Major Crypto Additions – Here’s Why It Matters

Gemini just flipped the leverage game on its head. The Winklevoss-owned exchange is rolling out new crypto options for cross-collateral—giving traders more firepower than a Wall Street prime brokerage (with fewer hidden fees, naturally).

More coins, more problems (solved)

Fresh assets now available as collateral mean traders can hedge positions across previously siloed portfolios. No more liquidating ETH to cover a BTC short—unless you enjoy burning money.

The institutional play

This isn't just for degens. Gemini's move pressures legacy finance to either adopt crypto-native tools or watch clients defect to platforms that speak fluent blockchain.

The fine print cynicism

Of course, 'expanded options' always come with expanded risks—but when has that ever stopped crypto from printing the future?

$0.000344 (DOGE), Solana$186 (SOL), and Bitcoin Cash (BCH). Initially starting with only Bitcoin (BTC)$0.000056 as a collateral option at the start of 2024, the platform has now broadened its system to support leveraged positions with various cryptocurrencies. This expansion allows for greater collateral flexibility, enabling investors to integrate idle cryptocurrencies into the system to generate additional capital. The inclusion of new cryptocurrencies will facilitate dynamic valuation of the collateral pool, ensuring the sustainability of all positions.

ContentsNew Cryptocurrencies Officially Added to the Cross-Collateral PoolAdvantages and Risks of Cross-Collateral

New Cryptocurrencies Officially Added to the Cross-Collateral Pool

Gemini’s announcement confirmed that investors can now deposit five new cryptocurrencies as collateral. Initially accepting only BTC, the platform has expanded its portfolio by listing high-liquidity assets like XRP, SHIB, DOGE, SOL, and BCH. The integration of these cryptocurrencies into the system has increased market depth and expanded the user base. The current market value of each cryptocurrency is instantly reflected in the collateral pool to determine the leverage ratio that can be obtained.

Crypto Traders Are Rushing to This App – Here’s Why You Should Too

In practice, an investor can form a collateral of approximately $440 by holding a thousand Doge (worth $226), one SOL (worth $183), and ten XRP (worth $31). The platform computes this total as “margin asset value” and uses it as a benchmark for maintaining open positions. This allows investors to finance their transactions with their existing assets without converting them to stablecoin.

Advantages and Risks of Cross-Collateral

The cross-collateral model allows users to combine multiple cryptocurrencies in the same pool. The system automatically calculates the necessary initial and maintenance margins based on the total dollar equivalent of the assets. Investors can open Leveraged trades without having to liquidate different cryptocurrencies in their portfolios, eliminating the need for additional capital. This increases transaction speed and flexibility in the market.

However, leveraged trades carry high risks. If prices drop significantly, the platform may swiftly liquidate cryptocurrencies in the collateral pool to cover the loss. Instances like XRP’s 10% drop in a single day on July 24 illustrate how quickly collateral value can diminish. Therefore, Gemini advises diversifying collateral and using low leverage to mitigate risks. Otherwise, users might face the risk of losing their entire assets.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.