Crypto exchange Gemini, founded by billionaire twins Tyler and Cameron Winklevoss, has scored a license from the Commodity Futures Trading Commission to offer prediction markets in the US.
Gemini said on Wednesday that its affiliate, Gemini Titan, received a designated contract market license from the CFTC and “plans to enter into the prediction markets space.”
The company said that “starting shortly,” its US users would be able to trade event contracts on its web platform and could expand its US derivatives offerings to include crypto futures, options, and perpetual contracts.
Gemini joins a number of crypto companies that have begun to offer prediction markets, allowing users to bet on the outcomes of a range of events, including sports and geopolitics.
Shares in Gemini (GEMI) shot up 13.7% in after-hours trading on Wednesday to $12.92 after ending the day’s trading session down 0.7%.
The license could be a major boost for Gemini, whose stock is down 64.5% since its public debut on Sept. 12 as the crypto market has struggled to sustain a rally.
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“Prediction markets have the potential to be as big or bigger than traditional capital markets,” said Gemini’s president, Cameron Winklevoss.
Gemini CEO Tyler Winklevoss said it first applied for the license in March 2020, and the approval “marks the culmination of a 5-year licensing process and the beginning of a new chapter for Gemini.”
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