Winklevoss twins’ Gemini bags US licence for prediction markets
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Gemini co-founders Tyler Winklevoss and Cameron Winklevoss at the company's initial public offering in New York City on Sept 12.
PHOTO: REUTERS
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Bengaluru – Gemini, the crypto platform founded by billionaire twins Tyler and Cameron Winklevoss, said on Dec 10 it had received a licence from the Commodity Futures Trading Commission (CTFC) to offer prediction markets to US customers.
Shares of the New York-based company jumped 10.8 per cent in extended trading. The stock has more than halved from its initial public offering price as of last close.
Gemini joins a growing number of companies venturing into the nascent and burgeoning corner of finance that has exploded in popularity in recent years.
Digital sports firm Fanatics last week announced its entry into the prediction markets, while Robinhood and Susquehanna teamed up in November to take over exchange LedgerX in their push to establish a stronghold in the space.
Prediction markets, which allow investors to bet on everything from major sports tournaments to monetary policy, have gained major traction since a US federal court in 2024 dismissed a CFTC prohibition on election betting.
“Prediction markets have the potential to be as big or bigger than traditional capital markets,” said Gemini president Cameron Winklevoss.
While critics liken prediction markets to gambling, proponents see the asset class as an accurate gauge of market expectations compared with traditional methods.
The approval is also a major boost for Gemini, which has had a rough start as a public company since its New York debut in September.
“Today’s approval marks the culmination of a five-year licensing process and the beginning of a new chapter for Gemini,” chief executive Tyler Winklevoss said, adding the firm had first applied for the licence in March 2020.
Gemini customers in the United States will be able to participate in prediction markets on the web interface shortly, while trading events contracts through the mobile app will be made available later.
Gemini said it will also explore expanding its derivatives offering for US customers to include crypto futures, options and perpetual contracts down the line. REUTERS
