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 clearing organization (DCO) license. This development enables Gemini to clear and settle trades internally, allowing for 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 seen significant growth, with a 300% increase in trading volume in 2025, reaching $63.5 billion. Major players such as Kalshi and Polymarket are expected to face competition from new entrants, including 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. Gemini's latest approval builds upon its December 2025 launch of a prediction marketplace via its affiliate, Gemini Titan, which received a designated contract market (DCM) authorization from the CFTC. With both DCM and DCO licenses in place, Gemini is well-positioned to offer a comprehensive trading ecosystem, spanning sports, crypto, futures, options, and event-based contracts. The company has expressed plans 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, aligning with the company's goal of creating a 'super app' for financial services. In February, Gemini announced its plans to focus on the U.S. market, exiting the U.K., European Union, and Australia, and reducing its staff by approximately 25%. The founders believe that 'America has the world's greatest capital markets' and that prediction markets will become as large as, or even surpass, today's capital markets.