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 clearinghouse (DCO) license. This license enables Gemini to clear and settle trades in-house, giving the company greater control over its prediction market products. As a result, Gemini's shares rose by approximately 7%. The approval marks a significant milestone in Gemini's expansion into regulated derivatives and prediction markets, which have experienced a 300% increase in trading volume in 2025, reaching $63.5 billion. With this development, Gemini is poised to compete with established players such as Kalshi and Polymarket, as well as new entrants like Hyperliquid. The company plans to offer a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts, and has expressed its intention to expand into crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this move is part of Gemini's broader strategy to create a 'super app' for financial services.