Gemini Secures Derivatives License, Expands into Regulated Markets

The US Commodity Futures Trading Commission (CFTC) has granted Gemini a derivatives clearinghouse (DCO) license, enabling the crypto 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 notable surge of approximately 7%. The prediction markets sector has witnessed remarkable 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 like Kalshi and Polymarket, while also facing new challenges from emerging platforms like Hyperliquid. The approval of the DCO license builds upon Gemini's earlier launch of a prediction marketplace through its affiliate, Gemini Titan, which received a designated contract market (DCM) authorization from the CFTC in December 2025. With both DCM and DCO licenses in place, Gemini is well-positioned to offer a comprehensive trading ecosystem that encompasses sports, crypto, futures, options, and event-based contracts. The company has expressed its intention to expand into crypto futures, options, and perpetuals for US users. According to Cameron Winklevoss, this milestone marks a significant step in Gemini's efforts to create a 'super app' for financial services. Gemini's foray into the prediction markets sector is part of its broader strategy to focus on the US market, following its exit from the UK, European Union, and Australia in February. The Winklevoss twins believe that America's capital markets are unparalleled and that prediction markets have the potential to rival or even surpass the size of today's capital markets.