The crypto exchange Gemini Space Station (GEMI), operated by Cameron and Tyler Winklevoss, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) for a derivatives clearinghouse license. This authorization permits Gemini to venture into regulated derivatives and prediction markets, one of the fastest-growing segments in the crypto realm. The CFTC’s endorsement enables Gemini to manage and settle trades internally, enhancing control over its prediction market offerings.
Following this announcement, shares in Gemini saw an increase of approximately 7%.
Prediction markets have witnessed rapid growth within the crypto industry, with trading volumes surging by more than 300% in 2025, reaching $63.5 billion. Platforms like Hyperliquid are gearing up to rival established players such as Kalshi and Polymarket. Additionally, Wall Street is making its move; Roundhill Investments plans to launch the first U.S.-based exchange-traded funds (ETFs) linked to prediction markets on May 5. Two other asset managers are also developing similar products.
Gemini’s latest approval builds upon its December 2025 introduction of a prediction marketplace through Gemini Titan, which obtained a designated contract market authorization from the CFTC.
Armed with both DCM and DCO licenses, Gemini is set to offer an integrated trading platform that includes sports, crypto, futures, options, and event-based contracts. The company has also expressed intentions to introduce crypto futures, options, and perpetuals for U.S. users.
“This milestone significantly advances Gemini’s expansion in the marketplace,” stated Cameron Winklevoss, characterizing this move as part of a broader strategy toward creating a comprehensive financial services ‘super app’.
In February, Gemini publicly outlined its plan to focus on the prediction markets sector within the U.S. following its exit from the U.K., European Union, and Australia, which entailed reducing its workforce by about 25%.
The Winklevosses emphasized that America’s robust capital markets make it an ideal focus for Gemini. They believe that prediction markets have the potential to grow as large, if not larger, than today’s capital markets.