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 clearing organization (DCO) license. This development enables Gemini to clear and settle trades internally, rather than relying on external providers, thereby granting the company greater control over its prediction market products. Following the announcement, Gemini's shares experienced a 7% increase. The approval marks a significant milestone in Gemini's expansion into regulated derivatives and prediction markets, which have witnessed a substantial surge in trading volume, exceeding $63.5 billion in 2025. With this license, Gemini is poised to offer a comprehensive trading ecosystem, encompassing sports, cryptocurrency, futures, options, and event-based contracts. The company has also expressed its intention to expand into cryptocurrency futures, options, and perpetuals for U.S. users. This move is part of Gemini's broader strategy to establish a 'super app' for financial services, as stated by Cameron Winklevoss. The development follows Gemini's debut of a prediction marketplace via its affiliate, Gemini Titan, which received a designated contract market (DCM) authorization from the CFTC in December 2025. Gemini's foray into prediction markets is expected to intensify competition with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid, a DeFi derivatives platform.