Gemini Obtains Derivatives License, Expands into Regulated Markets and Surges Ahead of Competition

The US Commodity Futures Trading Commission (CFTC) has granted Gemini a derivatives clearinghouse (DCO) license, enabling the cryptocurrency exchange to clear and settle trades internally. This development allows Gemini to exert greater control over its prediction market products and scale its operations more efficiently. Following the announcement, Gemini's shares experienced a significant surge of approximately 7%. The prediction markets sector has witnessed substantial growth, with trading volumes increasing by over 300% in 2025 to reach $63.5 billion. As a result, Gemini is poised to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company's latest milestone 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 is well-positioned to offer 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 US users. According to Cameron Winklevoss, this development marks a significant step in Gemini's marketplace expansion, aligning with the company's broader vision of creating a 'super app' for financial services. Earlier this year, Gemini announced its plans to focus exclusively on the US market, exiting the UK, European Union, and Australia, and reducing its staff by approximately 25%. The founders believe that the US has the world's most prominent capital markets and that prediction markets will eventually surpass or equal the size of today's capital markets.