Crypto wallets are evolving beyond simple storage tools into comprehensive financial platforms. Phantom’s latest partnership with regulated prediction market Kalshi demonstrates this shift perfectly.
The crypto wallet application has integrated event-based trading directly into its interface. This allows users to engage with outcome-driven markets without transferring funds to external platforms.
The move reflects a broader trend among crypto firms. They’re blending onchain infrastructure with regulated financial products tied to real-world events. These range from elections to economic data and cultural moments.
Phantom Prediction Markets Feature Launches
The partnership, announced on Friday, introduces Phantom Prediction Markets. This new feature supports tokenized event trading across multiple categories.
Users can now explore live events and monitor price movements within Phantom’s existing interface. The integration enables trading of tokenized positions linked to Kalshi’s regulated event contracts.
These contracts cover diverse categories including politics, economics, sports, and culture. Instead of using separate trading platforms, users can manage positions from their existing wallet.
The structure uses tokenized representations tied to Kalshi’s markets. This links decentralized wallet infrastructure with regulated event trading seamlessly.
Phantom described the product as enabling real-time engagement with topics users care about. It uses crypto-native tools to interact with real-world outcomes effectively.
Major Crypto Exchanges Enter Prediction Markets
Crypto exchanges such as Gemini and Coinbase are also moving into US prediction markets. On Thursday, Gemini Titan received a designated contract market license from the US Commodity Futures Trading Commission.
This license allows Gemini to offer event contract trading through its web platform. Following the announcement, Gemini shares rose nearly 14% in after-hours trading.
Prediction markets have gained significant traction recently. Traders seek alternative ways to express views on macroeconomic indicators and elections. These markets often operate outside traditional derivatives platforms.
Growing Market Interest
The investor response reflects growing interest in prediction market segments. These platforms allow users to trade on real-world event outcomes using market mechanisms.
Regulatory Challenges Persist in US Markets
Despite rising adoption, prediction markets face ongoing regulatory scrutiny. On December 4, the Connecticut Department of Consumer Protection sent cease and desist orders to major platforms.
The orders targeted Robinhood, Kalshi, and Crypto.com. Connecticut alleged these companies were offering unlicensed online gambling services.
Kalshi responded quickly by filing a lawsuit against the state agency. The company argued that its event contracts are permitted under federal law.
A Connecticut federal court judge later ordered the department to pause enforcement actions. This temporarily blocked the cease and desist order against Kalshi.
The ruling provides short-term relief as legal questions around prediction markets remain unresolved. However, regulatory challenges persist across multiple jurisdictions.
