The license could provide a major boost for Gemini, whose stock has declined 64.5% since its public debut on Sept. 12 as the crypto market struggled to sustain a rally.
Crypto News
Gemini has received a designated contract market license from the Commodity Futures Trading Commission, enabling the crypto exchange to offer prediction markets to U.S. users. The approval sent shares in Gemini up 13.7% in after-hours trading to $12.92 on Wednesday.
The exchange, founded by billionaire twins Tyler and Cameron Winklevoss, announced that its affiliate Gemini Titan secured the license and plans to enter the prediction markets space. U.S. users will be able to trade event contracts on the web platform starting shortly, according to the company.
Gemini stated it will expand its U.S. derivatives offerings to include crypto futures, options, and perpetual contracts alongside the prediction markets platform. The move positions the exchange to compete with other platforms that have begun offering prediction markets, allowing users to bet on outcomes of events ranging from sports to geopolitics.
Cameron Winklevoss, Gemini's president, stated prediction markets have the potential to be as big or bigger than traditional capital markets. The license could provide a major boost for Gemini, whose stock has declined 64.5% since its public debut on Sept. 12 as the crypto market struggled to sustain a rally.
Tyler Winklevoss, Gemini CEO, revealed the exchange first applied for the license in March 2020. The approval marks the culmination of a five-year licensing process and the beginning of a new chapter for the company.
Prediction markets have surged in popularity this year, with major platforms Polymarket and Kalshi both recording monthly trading volumes in November. Kalshi closed a $1 billion funding round at a valuation of $11 billion earlier this month, demonstrating investor appetite for the sector.
Critics of prediction markets liken the offering to gambling. Multiple U.S. state regulators have launched enforcement actions against CFTC-regulated platforms over their event contracts, claiming they offer unlicensed sports betting. The regulatory landscape remains contested across different jurisdictions.
The prediction markets offering is part of Gemini's plan to create a super app of multiple crypto products. Cameron Winklevoss detailed this strategy on an earnings call last month amid the company's first quarterly results, which showed losses due to expenses of going public.
The company faces competition from other crypto apps expanding beyond trading, with Trust Wallet launching prediction markets earlier this month and Coinbase seemingly creating a website for a prediction markets platform backed by Kalshi.
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