Gemini Secures Derivatives License, Enters Regulated Prediction Markets

The crypto exchange founded by Cameron and Tyler Winklevoss, Gemini, 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 increasing its control over the functioning and scalability of its prediction market products. Following the announcement, Gemini's shares experienced a surge of approximately 7%. The prediction markets sector has witnessed significant growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. As a result, Gemini is now poised to compete with established players such as Kalshi and Polymarket, while also facing competition from newcomers like Hyperliquid, a DeFi derivatives platform. Additionally, Wall Street is entering the scene, 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 through its affiliate, Gemini Titan, which received a designated contract market (DCM) authorization. With both DCM and DCO licenses in place, Gemini is well-positioned to offer a comprehensive trading ecosystem that spans sports, crypto, futures, options, and event-based contracts. The company has also expressed its intention to expand into crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this development marks a significant milestone in Gemini's marketplace expansion, which is part of the company's broader push toward creating a 'super app' for financial services. In February, Gemini announced its plans to enter the prediction markets sector and focus exclusively on the U.S. market, which involved a staff reduction of roughly 25% and its exit from the U.K., European Union, and Australia. The founders believe that 'America has the world's greatest capital markets' and that 'prediction markets will be as big or bigger than today's capital markets.'