Gemini Secures Derivatives License, Expands into Regulated Markets, and Sees Stock Surge

Following approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearinghouse license, Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, can now clear and settle trades internally. This move allows Gemini to exert greater control over its prediction market products, enhancing their functionality and scalability. The announcement led to a 7% increase in Gemini's shares. The prediction market sector has experienced rapid growth, with a 300% increase 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 December 2025 launch of a prediction marketplace through its affiliate, Gemini Titan, which received CFTC authorization, laid the groundwork for this expansion. With the newly acquired licenses, Gemini aims to establish a comprehensive trading ecosystem, encompassing sports, cryptocurrency, futures, options, and event-based contracts. The company also plans to introduce crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this development marks a significant milestone in Gemini's pursuit of creating a 'super app' for financial services. After announcing its withdrawal from the U.K., European Union, and Australia in February, Gemini has reaffirmed its focus on the U.S. market, citing the country's superior capital markets. The founders believe that prediction markets have the potential to surpass the size of current capital markets.