Gemini Secures Derivatives License, Enters Regulated Prediction Markets

The US Commodity Futures Trading Commission (CFTC) has granted Gemini a derivatives clearinghouse (DCO) license, enabling the cryptocurrency exchange to clear and settle trades internally. This development allows Gemini to exert greater control over its prediction market products and paves the way for expansion into regulated derivatives. Following the announcement, Gemini's shares rose by approximately 7%. The prediction market sector has experienced rapid growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. Gemini's entry into this sector is expected to challenge existing players such as Kalshi and Polymarket. The company has also announced plans to introduce a full-stack trading ecosystem, encompassing sports, cryptocurrency, futures, options, and event-based contracts. Furthermore, Gemini intends to expand its offerings to include cryptocurrency futures, options, and perpetuals for US users. This move is part of the company's broader strategy to create a 'super app' for financial services, as stated by Cameron Winklevoss. Gemini's foray into prediction markets follows its exit from the UK, European Union, and Australia, which included a staff reduction of around 25%. The founders believe that the US has the world's greatest capital markets and that prediction markets will eventually surpass traditional capital markets in size.