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 license. This development enables the company to clear and settle trades internally, giving it greater control over its prediction market products. As a result, Gemini's shares experienced a 7% increase. The approval marks a significant milestone in the company's expansion into regulated derivatives and prediction markets, which have witnessed a 300% growth in trading volume to $63.5 billion in 2025. With this license, Gemini is well-positioned to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company aims to offer a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts, and plans to expand into crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this development is a key step towards creating a 'super app' for financial services. Gemini's focus on the U.S. market follows its exit from the U.K., European Union, and Australia, and the company believes that prediction markets will eventually surpass traditional capital markets in size and scope.