Gemini Secures Derivatives License, Enters Regulated Prediction Markets

The crypto exchange Gemini, founded by Cameron and Tyler Winklevoss, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearinghouse license. This development enables Gemini to clear and settle trades internally, granting the company greater control over its prediction market products. Following the announcement, Gemini's shares experienced a 7% surge. The prediction market sector has witnessed significant growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. Gemini's expansion into this sector positions the company to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company's prediction marketplace, launched via its affiliate Gemini Titan, received a designated contract market authorization from the CFTC in December 2025. With the newly acquired licenses, Gemini aims to offer a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts. The company also plans to introduce crypto 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 involved a 25% staff reduction. The founders believe that prediction markets have the potential to surpass the size of current capital markets.