U.S. cryptocurrency exchange Gemini has secured a derivatives clearing organization (DCO) license from the U.S. Commodity Futures Trading Commission (CFTC).
According to a recent report by The Block, the approval allows Gemini to expand beyond crypto spot trading into non-spot trading such as prediction markets, futures and options.
With the license, Gemini unit Olympus will serve as the clearinghouse for trades on the Titan platform. It will directly handle settlement, risk management, collateral management and trade guarantees. Gemini has relied on external clearinghouses until now, but can now handle the process in-house, making cost reductions possible.
Cameron Winklevoss (캐머런 윙클보스), Gemini’s co-founder and president, said, “Gemini now has a full-stack end-to-end marketplace that spans prediction markets, futures and options in addition to the crypto spot market.”
Like Coinbase and Kraken, Gemini is pushing to expand its business toward trading a range of assets beyond tokens on a single platform. As part of that, it is stepping up efforts to secure a full set of CFTC derivatives licenses.
Gemini also received a designated contract market (DCM) license in December last year. The DCM license is currently used to operate prediction markets, and is also being used to launch futures, options and perpetual products through Titan affiliates.
