Gemini Exchange received approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate its derivatives clearinghouse.
The license, known as DCO (derivatives clearing organization), will allow the exchange to advance its plans for prediction markets and popular perps (perpetual contracts).
Following the approval, the exchange will now clear and settle its derivatives trades in-house instead of relying on third parties.
By extension, this will also give Gemini more control over how to scale its prediction markets, with Cameron Winklevoss, the exchange co-founder, calling the update ‘powerful.’
Given the opportunity size with prediction markets as well as future crypto derivatives, owning and operating the marketplace end-to-end is powerful.
Gemini’s bold ‘super app’ vision
Intriguingly, this was also a step closer to the exchange’s ‘super app’ vision, where users can get all trading and financial services under one roof. Cameroon added,
This marks a major milestone in our marketplace expansion. This is also a major building block for our super app, where users will be able to fulfill their existing and future financial needs all in one place.
Hyperliquid’s push for U.S. clarity
Worth pointing out, the exchange’s move into regulated prediction markets began last year with the designated contract market (DCM) license. Now, the dominant market players, Polymarket and Kalshi, must contend with increasing competition.
In fact, the popular cross-asset trading platform, Hyperliquid, is also expanding into the segment through HIP-4. However, Hyperliquid is a decentralized exchange, and the rules are not clear for decentralized prediction markets. So it may block U.S. users from accessing it.
In the meantime, though, the DEX is pushing for clarity via the Hyperliquid Policy Center, its research and lobbying arm in the U.S. In a recent comment on the CFTC’s proposed rulemaking on prediction markets, HPC urged the agency to,
Write flexible, function-based rules that can accommodate decentralized market structures. Establish an affirmative path for U.S. market participants to access decentralized prediction markets.
According to the group, this would promote American leadership in decentralized financial innovation.
That said, prediction markets are now a multi-billion dollar segment, with $150B in total trading volume in April 2026 alone—a nearly 6.5x surge on a year-on-year (YoY) basis.
Final Summary
- Gemini secured a CFTC derivatives clearing organization (DCO) license, enabling it to clear trades in-house and advance into perps and prediction markets.
- The update strengthens its ‘super app’ vision for end-to-end financial services while accelerating competition in regulated prediction markets.