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, providing 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 significant growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. Gemini's entrance into this market is expected to challenge existing players such as Kalshi and Polymarket. The company's plans to expand into crypto futures, options, and perpetuals for U.S. users are also underway. With the newly acquired licenses, Gemini aims to establish a comprehensive trading ecosystem, offering a range of contracts including sports, crypto, futures, options, and event-based contracts. Cameron Winklevoss views this development as a crucial step towards creating a 'super app' for financial services, with a focus on the U.S. market.