Gemini has received regulatory approval in the United States to enter the prediction markets space, marking a major expansion of its product lineup. The crypto exchange, founded by billionaire twins Tyler and Cameron Winklevoss, announced that its affiliate Gemini Titan has secured a designated contract market license from the Commodity Futures Trading Commission.
The approval allows Gemini to offer prediction markets to US users, enabling trading on event based contracts tied to outcomes across various categories. The company said that trading will begin shortly through its web platform, giving customers access to regulated prediction markets alongside its existing crypto services.
Gemini also confirmed that the new license will support a broader expansion of its derivatives business in the US. Planned offerings include crypto futures, options and perpetual contracts, adding to the exchange’s growing focus on advanced trading products. The move positions Gemini alongside other crypto firms that are diversifying beyond spot trading amid increasing competition in the sector.
Following the announcement, shares of Gemini rose 13.7 percent in after hours trading to $12.92. The stock had closed the regular session down 0.7 percent. Despite the surge, Gemini shares remain down 64.5 percent since the company’s public debut on September 12, reflecting broader weakness across the crypto market during recent months.
Gemini enters fast growing prediction markets sector
Prediction markets have gained momentum in 2024 as platforms like Polymarket and Kalshi posted record monthly trading volumes in November. Kalshi also completed a 1 billion dollar funding round earlier this month at a valuation of 11 billion dollars, highlighting strong investor interest in the sector.
Cameron Winklevoss, president of Gemini, said prediction markets could rival traditional capital markets in scale. He described the new offering as a strategic opportunity that aligns with the company’s long term vision. Tyler Winklevoss added that Gemini first applied for the CFTC license in March 2020 and called the approval the culmination of a five year regulatory process.
The launch comes as regulators continue to scrutinize prediction markets in the US. Critics argue that some event contracts resemble gambling, particularly in sports related markets. Several state regulators have initiated enforcement actions against CFTC regulated platforms, alleging that certain offerings amount to unlicensed sports betting.
Gemini’s approval may provide regulatory clarity as the exchange moves forward under federal oversight. The company said the prediction markets product is part of its broader plan to build a crypto super app that integrates multiple services under one platform. Cameron Winklevoss outlined the strategy during an earnings call last month following the release of Gemini’s first quarterly results as a public company, which showed losses linked to IPO related expenses.
The exchange is also competing with other crypto platforms expanding into prediction markets. Trust Wallet launched its own prediction market feature earlier this month, while Coinbase appears to be preparing a similar service in partnership with Kalshi. As competition intensifies, Gemini’s CFTC license could offer a regulatory advantage in the US market.
With the approval now secured, Gemini is positioning itself to capture a share of the rapidly expanding prediction markets sector while continuing to broaden its derivatives offerings. The company’s next steps will be closely watched by investors and regulators as prediction markets gain traction within the broader digital asset ecosystem.
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