Break into the new track of "Predicting the Future"! Cryptocurrency exchange Gemini (GEMI.US) also wants to have a share.

According to informed sources, the cryptocurrency exchange Gemini Space Station Inc., founded by billionaire Winklevoss brothers, is preparing to launch prediction market contract products, which will allow Gemini to join the ranks of many Financial Institutions, Inc. entering this emerging industry centered around prediction markets. Sources indicate that Gemini has discussed launching related products as soon as possible. The company representatives have not yet responded to requests for comments. It is understood that this emerging industry provides federally regulated betting channels, allowing users to bet on the outcomes of sports events, elections, and other events. In May of this year, Gemini applied for regulatory approval to establish its own derivatives exchange (i.e. "designated contract market"). Some sources say that the company's management has discussed trading prediction contracts through this exchange, and the application is currently in the approval stage. However, the approval process for a new exchange by the Commodity Futures Trading Commission (CFTC) may take several months or even years, and may be further delayed due to the government shutdown. The CFTC has declined to comment on this. Unlike Gemini, other exchanges and retail brokers choose to partner with prediction market platforms that already hold relevant licenses. For example, Robinhood offers event contract products from Kalshi to its users. Gemini's move will put it in direct competition with industry leaders, including Kalshi, which is already registered with U.S. derivatives regulators, and Polymarket, which plans to re-enter the U.S. market soon. Both of these platforms have recently seen record high trading volumes. At the same time, mainstream exchange groups like Intercontinental Exchange and CME Group Inc. are actively expanding in this area. Coinbase, Gemini's biggest competitor in the cryptocurrency field, announced during a recent earnings call that they plan to expand their event contract business as part of their strategy to build a "universal financial exchange". In fact, before its initial public offering in September of this year, Gemini revealed in regulatory filings that it planned to launch event contracts covering "economic, financial, political, and sports predictions". Since going public, the company's stock price has fallen 40% from its IPO price. According to the prospectus, Gemini is still operating at a loss and its market share in the U.S. cryptocurrency market is very limited. The newly listed company will release its first financial report on November 10th in U.S. Eastern Time. A Needham analyst commented that prediction markets provide a great opportunity for Gemini to expand its existing business. However, it is worth noting that prediction markets still face significant regulatory uncertainty. Although the CFTC has approved Kalshi to open a new market, state gambling regulatory agencies, which traditionally regulate sports betting, have raised objections in court.