Gemini has gained CFTC approval that opens the exchange up to compete directly in the prediction market. This comes amid rising interest in the booming market as crypto platforms look to tap into its growth.
Gemini Wins CFTC Approval to Offer Prediction Markets
In a release, it was learnt that the crypto exchange has received formal authorization from the CFTC to operate a designated contract market via its affiliate Gemini Titan.
The approval ends a five-year-long licensing process that started in 2020 and grants the company the capability to offer regulated prediction markets in the United States.
Tyler Winklevoss attributed this to the support of a pro-innovation environment by the Trump administration and CFTC Acting Chair Caroline Pham.
Gemini Titan has received approval to offer simple event-based contracts. These include binary “yes or no” bets on real-world events, such as political outcomes and economic data releases.
In the coming weeks, U.S. users will be able to access prediction markets directly on its website, with mobile trading available later. This is just the first step in a bigger plan to expand their derivatives offerings.
For instance, they are also exploring interest in additional products that U.S. traders have not been able to use before. This includes crypto futures, options, and perpetual swaps.
Along with the derivatives announcement, the exchange also announced support for Ripple’s RLUSD stablecoin on the XRP Ledger. The integration seeks to make cross-network transfers easier.
GEMI Stock Surges Despite Tough First Few Months
News of the CFTC approval triggered a sharp reaction in the public markets. Shares of the company’s stock, GEMI, surged 13.7% in after-hours trading to $12.92, according to Yahoo Finance.
Source: Yahoo FinanceThe jump comes after a difficult start since the company started trading. The stock is still down more than 60% since its September debut. The new license could give it some boost in the coming days.
Demand for prediction markets has started to increase greatly in 2024 and 2025. Both Polymarket and Kalshi posted record volumes in November.
Integrations also continue to extend further in the ecosystem. Recently, MetaMask integrated Polymarket directly into its mobile wallet. That would allow users to trade on event outcomes without having to change applications.
Robinhood also said it would create a futures and derivatives exchange strictly for prediction markets. Meanwhile, Trust Wallet recently launched its own prediction-market capabilities, while Coinbase seems to be readying a Kalshi-branded platform.
Source: https://coingape.com/gemini-receives-cftc-nod-for-prediction-market-plans-move-into-futures-and-perps/
