Gemini Secures Derivatives License, Enters Regulated Prediction 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 clearing organization (DCO) license. This license enables Gemini to clear and settle trades internally, rather than relying on external providers, thereby granting the company greater control over its prediction market products. As a result, Gemini's shares experienced a 7% increase following the announcement. The approval marks a significant milestone in Gemini's expansion into regulated derivatives and prediction markets, which have become one of the fastest-growing areas in the crypto industry, with trading volumes exceeding $63.5 billion in 2025. This development positions Gemini to compete with established players such as Kalshi and Polymarket, as well as newcomers like Hyperliquid, a DeFi derivatives platform. The company's plans include offering a comprehensive trading ecosystem that encompasses sports, cryptocurrency, futures, options, and event-based contracts, with intentions to expand into crypto futures, options, and perpetuals for U.S. users. According to Cameron Winklevoss, this development is a crucial step towards creating a 'super app' for financial services, with the founders believing that prediction markets will eventually surpass the size of today's capital markets.