Crypto exchange Gemini, founded by billionaire twins Tyler and Cameron Winklevoss, has secured approval from the Commodity Futures Trading Commission (CFTC) to offer prediction markets in the United States.
The company announced Wednesday that its affiliate, Gemini Titan, has been granted a designated contract market license from the CFTC and now “plans to enter the prediction markets space.”
Gemini said that US users will soon be able to trade event contracts directly on its web platform. The firm also plans to broaden its domestic derivatives lineup with crypto futures, options, and perpetual contracts.
With this move, Gemini joins a growing group of crypto firms rolling out prediction markets, which let users wager on outcomes across sports, politics, and global events.
Shares of Gemini (GEMI) surged 13.7% in after-hours trading Wednesday to $12.92, rebounding from a 0.7% decline during the regular session.
The new license could provide a significant lift for Gemini, whose stock has fallen 64.5% since its public debut on Sept. 12, as the broader crypto market continues to struggle to maintain momentum.
Prediction markets remain controversial, with critics comparing them to gambling. Several U.S. state regulators have pursued enforcement actions against CFTC-regulated platforms over event contracts, arguing they amount to unlicensed sports betting.
Gemini CEO Tyler Winklevoss said the company first applied for the license in March 2020, calling the approval “the culmination of a five-year licensing process and the beginning of a new chapter for Gemini.”
The rollout of prediction markets is a key component of Gemini’s plan to build a “super app” integrating multiple crypto products—a strategy Cameron Winklevoss outlined during last month’s earnings call. The company reported its first quarterly results after going public, posting losses tied to the costs of the listing.
Gemini is also facing growing competition from crypto firms branching out beyond trading. Trust Wallet introduced prediction markets earlier this month, and Coinbase appears to be developing a Kalshi-backed prediction market platform.
