Gemini Secures Derivatives License, Expands into Regulated Markets and Prediction

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 (DCO) license. This development enables Gemini to clear and settle trades internally, granting the company greater control over its prediction market products. As a result, Gemini's shares experienced a 7% surge following the announcement. The prediction markets sector has witnessed significant growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. Gemini's expansion into this sector is expected to pose a challenge to existing players such as Kalshi and Polymarket. The company has expressed plans to offer a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts. Additionally, Gemini aims to expand its services to include crypto futures, options, and perpetuals for U.S. users. This move is part of the company's broader strategy to create a 'super app' for financial services, as stated by Cameron Winklevoss. The development follows Gemini's debut of a prediction marketplace via its affiliate, Gemini Titan, which received a designated contract market (DCM) authorization from the CFTC in December 2025.