Gemini Secures Derivatives License, Eyes Prediction Market Expansion

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearing organization (DCO) license. This license allows Gemini to clear and settle trades internally, giving it greater control over its prediction market products. As a result, Gemini's shares increased by approximately 7%. The prediction market sector has experienced significant growth, with a 300% increase in trading volume in 2025, reaching $63.5 billion. Gemini's expansion into this sector positions it to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company's plans include offering a comprehensive trading ecosystem, encompassing sports, cryptocurrency, futures, options, and event-based contracts. Gemini also intends to expand its offerings to include cryptocurrency futures, options, and perpetuals for U.S. users. This development is part of Gemini's broader strategy to create a 'super app' for financial services, as stated by Cameron Winklevoss. Following its exit from the U.K., European Union, and Australia, Gemini is focusing on the U.S. market, where it believes the greatest opportunities lie. The Winklevoss twins envision prediction markets becoming as significant as or even surpassing current capital markets.