Gemini soars 14% as new license opens door to US prediction markets

Gemini, the well-known cryptocurrency exchange founded by Tyler and Cameron Winklevoss, has recently achieved a significant milestone by receiving a designated contract market license from the Commodity Futures Trading Commission (CFTC). This license allows Gemini to introduce prediction markets in the United States, a move that could reshape its presence in the crypto landscape.

Gemini receives license for prediction markets in the United States

The announcement was made on Wednesday, with Gemini stating that its affiliate, Gemini Titan, will soon begin offering prediction markets. These markets will enable users to trade event contracts on various outcomes, ranging from sports events to political developments. This licensing approval marks a turning point for Gemini, which has faced challenges in the competitive crypto market.

Expansion of derivatives offerings to include crypto futures and options

In addition to prediction markets, Gemini plans to broaden its derivatives offerings. Users will soon have access to crypto futures, options, and perpetual contracts, enhancing the trading experience on its platform. This expansion aligns with the company's goal of providing a comprehensive suite of trading products, catering to both retail and institutional investors.

Growing popularity of prediction markets amid regulatory scrutiny

Prediction markets have gained traction in recent months, with platforms like Polymarket and Kalshi reporting record trading volumes. However, this rise in popularity has not come without challenges. Critics often compare these markets to gambling, prompting several state regulators to investigate CFTC-regulated platforms for potentially offering unlicensed sports betting. Despite these challenges, the interest in prediction markets continues to grow.

Gemini's strategic vision and future plans for a comprehensive crypto app

Gemini's foray into prediction markets is part of a broader vision to create a "super app" that integrates multiple crypto products. Cameron Winklevoss emphasized this strategy during a recent earnings call, highlighting the company's commitment to innovation despite recent financial losses. This new offering positions Gemini alongside competitors like Trust Wallet and Coinbase, which are also exploring prediction markets. The approval of this license is seen as a significant achievement after a lengthy five-year application process, marking the start of a new chapter for the exchange.