Gemini Space Station (NASDAQ: GEMI), the digital currency brokerage owned by Cameron and Tyler Winklevoss, is partnering with Apex Fintech Solutions in a deal aimed at capitalizing on cryptocurrency event contracts.
Under the terms of the partnership announced earlier today, Gemini will become the exclusive listing venue for cryptocurrency event contracts distributed by Apex’s Futures Commission Merchant (FCM) to its various brokerage customers. Financial terms of the deal weren’t revealed. Gemini landed a Designated Contract Market (DCM) license from the Commodity Futures Trading Commission (CFTC) last December, allowing it to enter the prediction market industry.
“Under the alliance, brokerages that offer crypto event contracts through Apex’s FCM will use Gemini for execution and clearing – making Gemini the go-to regulated venue for crypto-based predictions markets accessed through Apex. Beyond crypto, Gemini affords Apex the flexibility to collaborate on additional contract categories, including sports, economics, and financial markets, on a non-exclusive basis,” according to a statement issued by the companies.
Apex and Gemini share history. Last month, the latter introduced zero-commission equity trades for select clients in the U.S. with a unit of Apex acting as the clearing broker and custodian for those transactions.
Why Apex, Gemini Deal Is Noteworthy
Amid the rise of prediction markets, hardly a week goes by when the industry doesn’t reveal further intersection with its brokerage and fintech counterparts, implying the Apex/Gemini partnership isn’t “a big deal.”
Upon closer examination, the two companies working together is potentially significant in prediction market terms for a simple reason: Cryptocurrency is one of the industry’s fastest-growing non-sports segments. Data out last month indicated that volume in digital currency derivatives offered by yes/no exchanges surged 44x, confirming there’s strong appetite among traders for event contracts linked to Bitcoin, Ethereum and other major digital currencies.
Additionally, the intersection of cryptocurrency and prediction markets is widely viewed as spurring new use cases for the former while introducing more new traders to the crypto universe, potentially creating long-term adopters and investors in the process.
As a crypto-first platform and one of the largest corporate owners of Bitcoin in the world, Gemini Space Station is arguably well-positioned to capitalize on enhanced ties between crypto and prediction markets.
Apex Has Compelling Partners
In terms of potential audience, Apex makes for an interesting event contract partner for Gemini Space Station because the fintech company partners with some well-known consumer-facing brokerage firms, including Public.com, Stash and Webull.
Broadly speaking, clients of those platforms cater to millennial and Gen Z investors, many of whom are already cryptocurrency investors and are displaying interest in yes/no exchanges.
Webull already offers its clients access to event contracts through a partnership with another prediction market operator.
