Phantom Integrates Regulated Prediction Markets Through Kalshi in Its Wallet

Crypto wallet application Phantom has teamed up with regulated prediction market Kalshi to introduce event-based trading directly within its wallet. This collaboration marks a notable integration of on-chain finance with real-world outcome betting.

Key Takeaways

Phantom has integrated event-based trading through Kalshi into its wallet, providing users with seamless access to trending events and betting features.
The new feature, Phantom Prediction Markets, allows users to trade tokenized positions related to various markets.
Major crypto exchanges, including Gemini and Coinbase, are exploring entry into the U.S. prediction markets sector.
Certain states, like Connecticut, are imposing regulatory challenges against prediction market platforms.

Phantom taps Kalshi to offer regulated prediction markets in wallet

In this article, we discuss Phantom's new partnership with Kalshi, enabling users to engage in prediction markets directly from their wallets. We also explore the growing interest among crypto exchanges in the U.S. prediction markets and the regulatory challenges these platforms currently face.

Integration of Prediction Markets

Phantom's announcement, made on Friday, highlighted that this integration will allow users to explore trending events, monitor live odds, and place bets, all without leaving the Phantom wallet. The innovative feature, called Phantom Prediction Markets, enables users to trade tokenized positions that correlate with Kalshi’s event markets across a range of sectors, including politics, economics, sports, and culture.

"By integrating a layer of tokenized positions referencing Kalshi’s regulated event markets with Phantom, users can trade what they care about in real time," stated Phantom CEO Brandon Millman.

Phantom User Interface
Source: Phantom

Growing Interest Among Crypto Exchanges

This move by Phantom coincides with a wider trend as prominent crypto trading platforms are keen to tap into the U.S. prediction markets. Recently, Gemini Titan, a part of the Gemini crypto exchange, was granted a designated contract market license by the U.S. Commodity Futures Trading Commission (CFTC), indicating its intent to enter the prediction markets field. Following this announcement, Gemini’s shares rose nearly 14% in after-hours trading.

In addition, tech researcher Jane Manchun Wong reported that crypto exchange Coinbase is also developing a prediction market. Screenshots of this undisclosed platform have been shared. According to Bloomberg, Coinbase is preparing to announce the launch of its prediction markets and tokenized equities soon. Additionally, a Coinbase spokesperson mentioned that the company would host a livestream to unveil new products, although no specifics regarding prediction markets or tokenized stocks were provided.

Regulatory Challenges for Prediction Markets

As prediction markets grow in popularity in the U.S., regulatory bodies are raising concerns. The Connecticut Department of Consumer Protection (DCP) has recently asserted its stance against various platforms by issuing cease and desist orders to Robinhood, Kalshi, and Crypto.com, claiming they were engaging in unlicensed online gambling. In response, Kalshi initiated legal action against the DCP, arguing that its event contracts comply with federal law.

A judge from the Connecticut federal court, Vernon Oliver, ruled that the DCP must refrain from enforcing its cease and desist order against Kalshi, temporarily halting the state's actions against the platform.

As the landscape of prediction markets continues to evolve, the interplay between innovation, user demand, and regulatory frameworks will shape their future in the crypto ecosystem.