- Gemini affiliate gains CFTC DCO approval for regulated derivatives clearing in US markets.
- In-house clearing gives Gemini more control over settlement and product risk management.
- Payward targets clearing access for Kraken through a planned Bitnomial acquisition deal.
Gemini Olympus, LLC, an affiliate of the Gemini crypto exchange, has received CFTC approval. It could now operate as a Derivatives Clearing Organization (DCO). The approval strengthens Gemini’s position in regulated U.S. derivatives and prediction market activity.
The license allows Gemini Olympus to clear trades linked to eligible derivatives products. These may include prediction market contracts and other regulated instruments. Gemini shares rose about 7% after the announcement
Gemini Boosts Full-Stack Ambitions
As a DCO, Gemini could manage settlement and risk for the eligible products it offers. That reduces its need to depend on outside clearinghouses for clearing services.
Cameron Winklevoss said the license lets Gemini clear regulated derivatives trading. He added that the approval also covers prediction market activity.
Winklevoss highlighted that Gemini now has a full-stack marketplace for predictions, futures, options, and other products. He also called the license a major building block for the company’s planned super app.
Cameron Winklevoss said the license is a major building block for Gemini’s planned super app. He said the app would let users meet current and future financial needs in one place.
The approval adds to Gemini’s earlier U.S. regulatory gains. The exchange had already received approval to operate as a Designated Contract Market (DCM).
That earlier status allowed Gemini to move ahead with its prediction market platform. The new clearing license now lets the company clear trades from that platform through its own system.
The structure gives Gemini more control over the trading cycle. It could support listing, trading, clearing, and settlement for certain regulated products under one framework.
DCO Licenses Drive Market Competition
Gemini had already shown interest in prediction markets earlier this year. In February, the company made public its plan to enter the sector and focus only on the U.S. market.
That shift came as Gemini announced its exit from the U.K., European Union, and Australia. The move also included a workforce reduction of about 25%.
The DCO license places Gemini in a limited group of registered U.S. derivatives clearing organizations. According to the CFTC’s registered DCO list, 22 firms currently hold this status.
However, Crypto.com and Polymarket have also used approval routes or acquisitions to gain a place in regulated prediction markets. However, Kraken has taken a different path.
After Deutsche Börse made a $200 million strategic investment in Payward, Kraken’s parent company agreed to acquire Bitnomial. The Bitnomial deal is valued at up to $550 million.
Bitnomial holds CFTC licenses for exchange, clearinghouse, and brokerage activity. The acquisition would give Kraken a direct route into regulated U.S. derivatives clearing if completed.
For Gemini, the CFTC approval strengthens its U.S. position. It also strengthens Gemini’s platform for future growth in regulated derivatives and prediction markets.
Related: Crypto Layoffs Deepen as Gemini Cuts 30% and Crypto.com Adopts AI
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