Key Takeaways
- Gemini is the latest crypto exchange to set its sights on the prediction markets.
- Rapid growth has generated significant excitement around the burgeoning asset class.
- The company is also considering launching crypto derivatives in the U.S.
Gemini Space Station on Wednesday, Dec 10, announced that its affiliate Gemini Titan has received approval from the Commodity Futures Trading Commission (CFTC) to act as a Designated Contract Market (DCM).
Crypto exchanges require a DCM registration to offer futures and options, but Gemini highlighted another possibility: event-based prediction markets.
Gemini to Support Event Contracts Trading
Pioneered by Kalshi and Polymarket, prediction markets have now found their way to other trading venues.
Crypto.com and Robinhood were the first exchanges to list event contracts under their respective DCM licenses, letting users wager on everything from political appointments and sporting events to market movements and interest rates. (Although platform operators insist they don’t facilitate gambling.)
Gemini’s planned entry into space comes more than five years after the company first applied for approval from the CFTC.
It marks “the beginning of a new chapter” for the exchange, CEO Tyler Winklevoss stated on Thursday, Dec. 12.
The new product will initially be available via Gemini’s web interface, with events contract trading expected to launch on its mobile app “soon,” the company said.
A Lucrative Opportunity
Gemini’s decision to prioritize event predictions over traditional futures contracts reflects significant excitement around the new market.
For other exchanges that offer the feature, prediction markets have become a lucrative growth engine.
During a Q3 earnings presentation, Robinhood CEO Vladimir Tenev said the new business line was “on fire,” with volume doubling every quarter since the product was launched in 2024.
“This could be one of the largest asset classes because you can price risk in pretty much anything,” he observed.
U.S. Derivatives Coming Next
Although prediction markets are its top priority, Gemini eventually plans to explore the full range of possibilities afforded by its DCM license.
“In the future, Gemini Titan will explore expanding its derivatives offering for U.S. customers to include crypto futures, options, and perpetual contracts,” Thursday’s announcement stated.
With the CFTC recently lifting its ban on leveraged crypto products, margin lending could also be on the cards.
Top Trending Crypto Articles
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
