Gemini Secures Derivatives License, Enters Regulated Prediction Markets, and Sees Stock Price Increase

Following approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearing organization (DCO) license, Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, can now enter the regulated derivatives and prediction markets. This license enables Gemini to clear and settle trades internally, providing greater control over its prediction market products. As a result, Gemini's shares rose by approximately 7%. The prediction market sector has experienced rapid growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. With this development, Gemini is poised to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company's plans include expanding into crypto futures, options, and perpetuals for U.S. users, with the goal of creating a comprehensive trading ecosystem. According to Cameron Winklevoss, this milestone marks a significant step towards establishing 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 staff reduction of around 25%. The founders believe that prediction markets have the potential to surpass the size of current capital markets.