Gemini Obtains Derivatives License, Eyes Prediction Market Expansion

The US Commodity Futures Trading Commission (CFTC) has granted Gemini a derivatives clearinghouse (DCO) license, enabling the exchange to clear and settle trades internally and exert greater control over its prediction market products. This development allows Gemini to expand its offerings in the rapidly growing prediction markets sector, which has seen a 300% increase in trading volume in 2025, reaching $63.5 billion. As a result, Gemini's shares have surged by approximately 7%. The company's prediction marketplace, launched via its affiliate Gemini Titan in December 2025, has received a designated contract market (DCM) authorization from the CFTC. With both DCM and DCO licenses in place, Gemini is poised to offer a comprehensive trading ecosystem encompassing sports, crypto, futures, options, and event-based contracts. The exchange has also announced plans to introduce crypto futures, options, and perpetuals for US users. According to Cameron Winklevoss, this milestone marks a significant step towards establishing a 'super app' for financial services. Gemini's strategic focus on the US market, following its exit from the UK, EU, and Australia, underscores its commitment to capitalizing on the country's robust capital markets. The Winklevoss twins believe that prediction markets have the potential to rival or even surpass the size of today's capital markets.