Gemini Secures Derivatives License, Enters Prediction Market Challenge

The crypto exchange Gemini, founded by Cameron and Tyler Winklevoss, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearing organization (DCO) 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 shares experienced a surge of approximately 7%. The approval marks a significant milestone in Gemini's expansion into regulated derivatives and prediction markets, which have seen a substantial increase in trading volume, reaching $63.5 billion in 2025. With this development, Gemini is poised to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company aims to offer a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts, and has expressed plans to expand into crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this milestone is part of Gemini's broader strategy to create a 'super app' for financial services. The company's focus on the U.S. market follows its exit from the U.K., European Union, and Australia, which included a staff reduction of approximately 25%. The Winklevoss brothers believe that prediction markets have the potential to become as large as or even surpass current capital markets.