Gemini Secures Derivatives License, Expands into Regulated Markets

The US Commodity Futures Trading Commission (CFTC) has granted Gemini a derivatives clearinghouse (DCO) license, allowing the crypto exchange to clear and settle trades internally. This development enables Gemini to exert greater control over its prediction market products and scale its operations more efficiently. Following the announcement, Gemini's shares experienced a 7% surge. The prediction market sector has witnessed remarkable growth, with trading volumes increasing by over 300% in 2025 to $63.5 billion. As a result, Gemini is poised to compete with established players like Kalshi and Polymarket, as well as newcomers like Hyperliquid. The company's expansion into regulated derivatives and prediction markets is part of its broader strategy to create a 'super app' for financial services. With the DCM and DCO licenses in place, Gemini aims to offer a comprehensive trading ecosystem, encompassing sports, crypto, futures, options, and event-based contracts. The company also plans to introduce crypto futures, options, and perpetuals for US users, further solidifying its position in the market.