Gemini Secures Derivatives License, Enters Regulated Prediction Markets

The cryptocurrency exchange founded by Cameron and Tyler Winklevoss, Gemini, 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, giving the company greater control over its prediction market products and scalability. Following the announcement, Gemini's shares experienced a 7% increase. The prediction market sector has witnessed significant growth, with a 300% rise in trading volume in 2025, reaching $63.5 billion. As a result, Gemini is poised to compete with established players like Kalshi and Polymarket, as well as newcomers such as Hyperliquid. The company's recent approval builds upon its December 2025 launch of a prediction marketplace through its affiliate, Gemini Titan, which received a designated contract market (DCM) authorization from the CFTC. With both DCM and DCO licenses in place, Gemini aims to provide a comprehensive trading ecosystem, encompassing sports, cryptocurrency, futures, options, and event-based contracts. The company has expressed its intention to expand into cryptocurrency 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 vision of creating a 'super app' for financial services. Gemini's strategic focus on the U.S. market was reaffirmed in February, when the company announced its exit from the U.K., European Union, and Australia, accompanied by a staff reduction of approximately 25%. The founders emphasized their belief that 'America has the world's greatest capital markets' and that 'prediction markets will be as big or bigger than today's capital markets.'