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 (DCO) license. This development enables Gemini to clear and settle trades internally, thereby exerting greater control over its prediction market products. As a result, Gemini's shares experienced a 7% increase. The prediction market sector has witnessed significant growth, with trading volumes rising by over 300% in 2025 to $63.5 billion. This trend is expected to continue, with Hyperliquid, a DeFi derivatives platform, preparing to compete with established players such as Kalshi and Polymarket. Meanwhile, Wall Street is also entering the fray, with Roundhill Investments set to launch the first U.S. exchange-traded funds (ETFs) tied to prediction markets on May 5. The CFTC's approval builds upon Gemini's December 2025 launch of a prediction marketplace via its affiliate, Gemini Titan, which received a designated contract market (DCM) authorization. With both DCM and DCO licenses in place, Gemini is poised to offer a comprehensive trading ecosystem encompassing sports, cryptocurrency, futures, options, and event-based contracts. The company aims to expand into crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this milestone marks a significant step in Gemini's marketplace expansion, aligning with the company's broader vision of creating a 'super app' for financial services. In February, Gemini announced its plans to focus on the U.S. market, exiting the U.K., European Union, and Australia, and reducing its staff by approximately 25%. The founders believe that the U.S. has the world's most prominent capital markets and that prediction markets will eventually surpass today's capital markets in size.