Gemini Secures Derivatives License, Expands into Regulated Prediction Markets

Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, has been granted a derivatives clearing organization (DCO) license by the U.S. Commodity Futures Trading Commission (CFTC). This development enables the company to clear and settle trades internally, thereby exerting greater control over its prediction market products. As a result, Gemini's shares experienced a 7% surge following the announcement. The prediction market sector has witnessed remarkable growth, with trading volumes increasing by over 300% in 2025 to reach $63.5 billion. Gemini's entry into this market is expected to intensify competition with established players such as Kalshi and Polymarket, as well as new entrants like Hyperliquid. The company's expansion into regulated derivatives and prediction markets is part of its broader strategy to create a comprehensive trading ecosystem, encompassing sports, cryptocurrency, futures, options, and event-based contracts. With the newly acquired DCO and DCM licenses, Gemini is poised to offer a wide range of trading products, including crypto futures, options, and perpetuals, to its U.S. users. According to Cameron Winklevoss, this milestone marks a significant step towards establishing Gemini as a 'super app' for financial services. The company's decision to focus exclusively on the U.S. market, as announced in February, underscores its commitment to capitalizing on the country's robust capital markets.