Hassan Maishera
TL;DR
- Gemini, the crypto exchange run by Cameron and Tyler Winklevoss, won CFTC approval for a derivatives clearinghouse license.
- This would allow the platform to clear and settle its own derivatives and prediction-market trades.
Gemini to Compete with Kalshi and Polymarket After Obtaining the CFTC License
Gemini, the crypto 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.
The license enables the company to directly clear and settle trades in the rapidly growing sector of prediction markets. This move gives Gemini greater control over its prediction market products and positions it as a key player in one of crypto’s most competitive sectors.
Following the announcement, Gemini’s shares rose by approximately 7%. Prediction markets, which saw trading volumes surge over 300% in 2025, are quickly becoming one of crypto's fastest-growing areas, with a market value of $63.5 billion.
Gemini now enters the arena alongside rivals like Kalshi and Polymarket, as well as new entrants such as Hyperliquid, a DeFi derivatives platform. Wall Street has also entered the space, with Roundhill Investments set to launch the first U.S. exchange-traded funds (ETFs) tied to prediction markets on May 5.
The DCO approval complements Gemini’s December 2025 launch of a prediction marketplace via its affiliate Gemini Titan, which already secured a designated contract market (DCM) authorization.
Together, the DCM and DCO licenses position Gemini to offer a full-stack trading ecosystem covering sports, crypto, futures, options, and event-based contracts. The company also plans to expand into crypto futures, options, and perpetuals for U.S. users.
Gemini’s move into the prediction markets sector comes as part of a broader strategy to expand its offerings, positioning itself as a “super app” for financial services.
