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, giving the company greater control over its prediction market products and allowing for more efficient scaling. Following the announcement, Gemini's shares experienced a surge of approximately 7%. The prediction market sector has witnessed significant growth, with trading volumes increasing by over 300% in 2025 to reach $63.5 billion. This growth has attracted competitors such as Hyperliquid, a DeFi derivatives platform, as well as traditional financial institutions like Roundhill Investments, which plans to launch the first U.S. exchange-traded funds (ETFs) tied to prediction markets. Gemini's expansion into prediction markets builds upon its December 2025 debut of a prediction marketplace through an 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, cryptocurrency, futures, options, and event-based contracts. The company has expressed intentions to further 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 broader goal of 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, which included a staff reduction of approximately 25%. The founders believe that the U.S. has the world's greatest capital markets and that prediction markets will eventually surpass the size of today's capital markets.