- Gemini Titan, an affiliate of the crypto exchange Gemini, has received a designated contract market license from the Commodity Futures Trading Commission (CFTC).
- The license authorizes Gemini to offer prediction markets in the United States, allowing users to trade event contracts.
- Gemini plans to expand its U.S. derivatives trading to include crypto futures, options, and perpetual contracts.
- Following the announcement, Gemini’s shares rose by 13.7% in after-hours trading.
- The approval concludes a five-year application process that began in March 2020.
Gemini, the cryptocurrency exchange founded by billionaire twins Tyler and Cameron Winklevoss, announced on Wednesday that its affiliate, Gemini Titan, has secured a designated contract market license from the Commodity Futures Trading Commission (CFTC). This license permits Gemini to operate prediction markets within the United States.
Prediction markets are platforms where users can buy and sell contracts based on the outcome of future events such as sports, politics, or other significant occurrences. Starting soon, U.S. users of Gemini will be able to trade event contracts on Gemini Titan’s web platform. The company also intends to broaden its derivatives offerings to include crypto futures, options, and perpetual contracts.
Shares in Gemini (ticker: GEMI) increased by 13.7% to $12.92 in after-hours trading on Wednesday, reversing a 0.7% decline in the regular session. This comes after the company’s stock had dropped nearly 65% since its public debut in mid-September, amid challenging conditions in the crypto market.
“Prediction markets have the potential to be as big or bigger than traditional capital markets,” stated Gemini’s president, Cameron Winklevoss. Gemini CEO Tyler Winklevoss noted that the company first applied for this license in March 2020 and described the approval as “the culmination of a 5-year licensing process and the beginning of a new chapter for Gemini.”
Gemini joins several other crypto firms exploring prediction markets, which allow users to speculate on a range of events, providing a new avenue in derivatives trading.
For further details, see Gemini’s announcement.
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