Cryptocurrency exchange Gemini Space Station Inc. (GEMI.US), founded by billionaire Winklevoss twins, is preparing to launch prediction market contracts, positioning itself among financial institutions entering this fast-growing sector. Sources indicate Gemini has discussed expediting product rollout, though company representatives declined to comment.

The emerging industry offers federally regulated betting platforms where users can wager on outcomes of sports events, elections, and other occurrences. In May, Gemini applied for regulatory approval to establish its own derivatives exchange (a designated contract market). Some insiders revealed management explored trading prediction contracts through this platform, though approval remains pending. The U.S. Commodity Futures Trading Commission (CFTC) typically takes months or years to review new exchanges, with potential delays due to government shutdowns. The CFTC declined to comment.

Unlike Gemini, competitors like Robinhood (HOOD.US) partner with licensed prediction platforms such as Kalshi. Gemini’s move pits it against major players including CFTC-registered Kalshi and Polymarket, which plans a U.S. relaunch—both recently hitting record trading volumes. Intercontinental Exchange (ICE.US) and CME Group (CME.US) are also expanding in this space.

Rival Coinbase (COIN.US) recently announced plans to grow its event contract business as part of building a "financial exchange for everything." Gemini had disclosed intentions to offer contracts covering "economic, financial, political, and sports predictions" before its September IPO. Since listing, its shares have fallen 40% below the offering price.

Gemini remains unprofitable with minimal U.S. crypto market share, per its prospectus. The newly public company will report earnings on November 10. A Needham analyst noted prediction markets present expansion opportunities, though regulatory uncertainty persists. While CFTC approved Kalshi’s market, state gambling regulators traditionally overseeing sports betting have legally challenged such ventures.