Crypto wallet Phantom has begun offering prediction markets to eligible users in the United States through Kalshi.
Users can now trade contracts on crypto prices, sports and other real-world events directly in the app. The contracts are regulated by the CFTC and include short-term Bitcoin markets that settle every 15 minutes. Trades are funded from Phantom Cash balances in the CASH stablecoin.
According to Cointelegraph, Kalshi handles customer verification, account management and trade execution, while Phantom provides access through its app, Cointelegraph reported. The launch follows no-action relief granted by the CFTC in March under Staff Letter 26-09. The relief means Phantom does not need to register as an introducing broker to connect users to regulated markets, provided it meets certain conditions. Phantom was the first passive software provider to receive this relief.
The service is rolling out through a new Predict tab in the Phantom app. Availability depends on the user’s state and the market category. Before placing a trade, users can check live prices, sports scores and market data. The interface works much like a token swap.
Available markets cover crypto, professional and college sports, economics, politics and current events. Each market also has a live chat where users can follow discussions.
“Crypto traders already think in short windows, like where Bitcoin will be in 15 minutes. When a market closes that fast, every extra screen costs you the price you saw. We built this to take Phantom users from a view to a trade inside the app they already use, and we’ll keep cutting the steps in between,” said Femi Awomosu, Head of Product (Trading) at Phantom.
The launch comes as courts and regulators continue to debate whether event contracts fall under federal derivatives rules or state gambling laws. The CFTC has sued Utah over the state’s challenge to Kalshi’s event contracts under its gambling laws. Similar disputes are playing out elsewhere in the country.
Trading activity has continued to grow despite the legal uncertainty. Data compiled by DeFi Rate shows Kalshi recorded $10.8 billion in crypto contract volume over the 30 days ending October 27, up 19.6% from the previous period.
“Phantom did the regulatory work up front, and it’s a model for how prediction markets can reach more people. We’re excited to bring Kalshi’s CFTC-regulated markets to Phantom’s U.S. users, so they can trade on real-world events without leaving the app,” said Max Crowley, VP of Business Development at Kalshi.
Users with an existing Kalshi account can link it to Phantom and skip verification. Those who have already verified their identity through Phantom’s other regulated partners can share their existing verification details with Kalshi. Trades are funded from Phantom Cash balances, and cash-outs return to the same balance.
Availability varies by state and market category, so some contracts may not be accessible to all users. Phantom itself is not registered with the CFTC; the markets are offered by KalshiEX LLC.
