Gemini Secures Derivatives License, Enters Regulated Prediction Markets

The US-based cryptocurrency exchange, Gemini, has received approval from the Commodity Futures Trading Commission (CFTC) for a derivatives clearinghouse license. This development enables the company to clear and settle trades internally, giving it greater control over its prediction market products. As a result, Gemini's shares experienced a 7% surge following the announcement. The prediction market sector has witnessed rapid growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. With this license, Gemini is well-positioned to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company plans to offer a comprehensive trading ecosystem, including sports, crypto, futures, options, and event-based contracts. Gemini's founders, Cameron and Tyler Winklevoss, envision a 'super app' for financial services, with prediction markets playing a key role in their strategy. The company's focus on the US market is driven by its belief in the country's capital markets and the potential for prediction markets to rival traditional capital markets in size and scope.