Cryptocurrency exchange Gemini has taken another major step in US regulation. The Commodity Futures Trading Commission (CFTC) has permitted Gemini to operate as a Derivatives Clearing Organization (DCO). The exchange now wants to expand its presence in the field of derivatives and prediction markets.
Gemini Exchange obtains CFTC master license
The approval allows the Gemini Exchange to clear trades associated with derivatives products, such as prediction markets, in-house rather than through clearinghouses. This allows it to manage the settlement and risks of the trades and products it offers, rather than relying on a clearing house.
It also allows the exchange to expand its offers to Trade futures derivatives products. Co-founder Cameron Winklevoss books“We are pleased to announce that Gemini has obtained a Derivatives Clearing Organization (DCO) license from the Commodity Futures Trading Commission (CFTC). This license allows us to operate as a clearinghouse for regulated derivatives trading, including prediction markets.”
The license comes on top of previous developments in Gemini’s regulatory journey. the Crypto exchange It previously obtained approval to operate a designated contract market. This enables it to launch its own forecasting platform. With DCO’s approval, the Gemini exchange can now filter trades made on that platform through its own platform.
“Gemini now has a comprehensive, integrated market for forecasts as well as futures, options and more,” Winklevoss added. He also said that it is “a key building block for our super app, where users will be able to meet their current and future financial needs, all in one place.”
What other companies hold this license?
Gemini Exchange is one of 22 companies in the United States with this status, demonstrating the rarity of approval. Others in the field have also sought this ability. Kalshi obtained its license some time ago, and Crypto.com and Polymarket have used similar methods to gain approval and acquire companies.
In contrast, Kraken took a completely different route. After earning Financing worth $200 million from the German Stock ExchangeIt is looking to gain a foothold in the freeing up space by purchasing a license-holding company, Bitnomial.
