Gemini Secures Derivatives License, Expands into Regulated Markets

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 clearinghouse license. This license enables Gemini to clear and settle trades internally, giving the company greater control over its prediction market products. As a result, Gemini's shares have risen by approximately 7%. The prediction market sector has experienced significant growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. This development positions Gemini to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. With its new licenses, Gemini aims to offer a comprehensive trading ecosystem, including sports, cryptocurrency, futures, options, and event-based contracts. The company also plans to expand into cryptocurrency futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this milestone marks a significant step towards creating a 'super app' for financial services. Gemini's focus on the U.S. market follows its exit from the U.K., European Union, and Australia, which included a 25% staff reduction. The Winklevoss twins believe that the U.S. has the world's most prominent capital markets and that prediction markets will become as large as or even surpass current capital markets.