Gemini Obtains Derivatives License, Expands into Regulated 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 (DCO) license. This development enables Gemini to clear and settle trades internally, granting the company 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 significant growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. With this license, Gemini is poised 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 builds upon its December 2025 launch of a prediction marketplace through its affiliate, Gemini Titan, which received a designated contract market (DCM) authorization from the CFTC. Gemini aims to offer a comprehensive trading ecosystem, encompassing sports, cryptocurrency, futures, options, and event-based contracts. The company also plans to introduce crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this milestone marks a significant step towards creating a 'super app' for financial services. Gemini's focus on the U.S. market follows its exit from the U.K., European Union, and Australia, which involved a staff reduction of approximately 25%. The Winklevoss twins believe that the U.S. has the world's most prominent capital markets and that prediction markets will eventually rival or surpass the size of today's capital markets.