Gemini Secures Derivatives License, Expands into Regulated Markets

The cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearinghouse (DCO) license. This development enables Gemini to clear and settle trades internally, giving it greater control over its prediction market products. As a result, Gemini's shares experienced a 7% surge. The approval marks a significant milestone in Gemini's expansion into regulated derivatives and prediction markets, which have seen a 300% increase in trading volume in 2025, reaching $63.5 billion. With this license, Gemini is well-positioned to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company plans to offer a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts, with intentions to expand into crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this development is a crucial step towards creating a 'super app' for financial services. Gemini's focus on the U.S. market follows its departure from the U.K., European Union, and Australia, with the founders believing that 'America has the world's greatest capital markets' and that prediction markets will become as significant as today's capital markets.