Gemini Secures Derivatives License, Enters Regulated Prediction 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 (DCO) license. This development enables Gemini to clear and settle trades internally, providing greater control over its prediction market products. As a result, Gemini's shares experienced a surge of approximately 7%. The prediction market sector has witnessed significant growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. With this approval, Gemini is well-positioned to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company's expansion into regulated derivatives and prediction markets is part of its broader strategy to create a 'super app' for financial services. Gemini has expressed plans to offer a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts, and intends to expand into crypto futures, options, and perpetuals for U.S. users.