U.S. Gemini enters prediction markets…obtains license from CFTC

JOON HYOUNG LEE

Summary

U.S. cryptocurrency exchange Gemini said it will enter the prediction market platform business.
Gemini's subsidiary Gemini Titan said it obtained a designated contract market (DCM) license from the CFTC and plans to provide prediction market services to U.S. customers.
Gemini expects prediction markets to have high growth potential comparable to traditional capital markets.

U.S. cryptocurrency exchange Gemini is pursuing a prediction market platform business.

Gemini's subsidiary Gemini Titan announced on the 10th (local time) that it had obtained a designated contract market (DCM) license from the U.S. Commodity Futures Trading Commission (CFTC). Earlier, Gemini applied for a DCM license to CFTF in March 2020. Gemini said, "(By obtaining the license) we are now able to offer prediction market services to U.S. customers."

Gemini plans to offer prediction market contracts composed of only two questions such as 'yes' or 'no.' Gemini explained, 'For example, there could be event contracts on questions such as 'Will the price of Bitcoin exceed $200,000 by the end of this year', 'Will Elon Musk's X (X) pay the European Commission (EU) a fine of $140,000,000 in full next year', and so on.'

Gemini believes prediction markets have the potential for explosive growth. Gemini chairman Cameron Winklevoss said, "Prediction markets have the potential to grow as large as, or larger than, traditional capital markets." Gemini chief executive officer (CEO) Tyler Winklevoss said, "(This approval) is the fruit of a five-year licensing process and the beginning of a new chapter for Gemini."

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