Gemini Secures Derivatives License, Expands into Regulated Markets

The cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearinghouse license. This development enables Gemini to clear and settle trades internally, granting greater control over its prediction market products and scalability. Following the announcement, Gemini's shares experienced a 7% surge. The approval marks a significant milestone in Gemini's expansion into regulated derivatives and prediction markets, which have witnessed a substantial 300% increase in trading volume in 2025, reaching $63.5 billion. Gemini's entry into this sector is expected to challenge existing players such as Kalshi and Polymarket, while also paving the way for the company to offer a comprehensive trading ecosystem encompassing sports, crypto, futures, options, and event-based contracts. The company has expressed plans to further expand into crypto futures, options, and perpetuals for U.S. users, with the founders envisioning a 'super app' for financial services. This move is part of Gemini's broader strategy to focus on the U.S. market, having announced its exit from the U.K., European Union, and Australia in February, accompanied by a 25% staff reduction.