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 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 7% surge. The prediction market sector has witnessed remarkable growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. As a result, Gemini is poised to compete with established players like Kalshi and Polymarket, while also facing competition from new entrants such as Hyperliquid. The approval marks a significant milestone in Gemini's expansion into the US market, where it plans to offer a comprehensive trading ecosystem encompassing 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, with the long-term goal of creating a 'super app' for financial services.