Gemini Secures Derivatives License, Enters Regulated Prediction Markets

Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearinghouse license. This license enables Gemini to clear and settle trades internally, giving the company greater control over its prediction market products. As a result, Gemini's shares surged by approximately 7%. The approval marks a significant milestone in Gemini's expansion into regulated derivatives and prediction markets, which have experienced remarkable growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. Gemini's move into prediction markets will see it compete with established players such as Kalshi and Polymarket, as well as newcomer Hyperliquid. The company's plans to offer a full-stack trading ecosystem, including sports, crypto, futures, options, and event-based contracts, are now underway, with intentions to expand into crypto futures, options, and perpetuals for U.S. users. Cameron Winklevoss described the development as a key step towards creating a 'super app' for financial services, emphasizing the company's focus on the U.S. market and its belief that prediction markets will become as significant as today's capital markets.