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

The crypto exchange founded by Cameron and Tyler Winklevoss, Gemini, has been granted a derivatives clearinghouse license by the U.S. Commodity Futures Trading Commission (CFTC). This approval enables Gemini to clear and settle trades internally, providing greater control over its prediction market products and scalability. As a result, Gemini's shares experienced a 7% increase following the announcement. The prediction market sector has witnessed significant growth, with a 300% increase in trading volume in 2025, reaching $63.5 billion. This development positions Gemini to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company's expansion into regulated derivatives and prediction markets is part of its broader strategy to create a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts. Gemini also intends to introduce crypto futures, options, and perpetuals for U.S. users. This move follows the company's December 2025 launch of a prediction marketplace through its affiliate, Gemini Titan, which received a designated contract market authorization from the CFTC. With the DCM and DCO licenses in place, Gemini is poised to offer a full-stack trading ecosystem, according to the company. Cameron Winklevoss described this development as a significant milestone in Gemini's marketplace expansion, aligning with the company's goal of creating a 'super app' for financial services. In February, Gemini announced its plans to focus on the U.S. market and exit the U.K., European Union, and Australia, which involved 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.