Gemini Secures Derivatives License, Expands into Regulated Markets

The crypto exchange Gemini, founded by Cameron and Tyler Winklevoss, has been granted a derivatives clearinghouse license by the U.S. Commodity Futures Trading Commission, enabling the company to clear and settle trades internally. This development allows Gemini to exert greater control over its prediction market products and scale them more efficiently. Following the announcement, Gemini's shares experienced a 7% increase. The prediction market sector has been witnessing rapid 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 like Hyperliquid. The company's expansion into regulated derivatives and prediction markets is part of its broader strategy to create a comprehensive trading ecosystem, encompassing sports, crypto, futures, options, and event-based contracts. Gemini aims to offer a full-stack trading experience and intends to venture into crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this milestone marks a significant step towards establishing Gemini as a 'super app' for financial services. The company's focus on the U.S. market is driven by its belief in the country's robust capital markets and the vast potential of prediction markets, which it expects to rival or surpass traditional capital markets.