Phantom has launched prediction markets for eligible US users through an integration with Kalshi, allowing them to trade on crypto prices, sports and other real-world events directly inside the crypto wallet’s app.
The Wednesday announcement said the integration offers CFTC-regulated event contracts, including short-term Bitcoin price markets that settle every 15 minutes. Trades can be funded through Phantom Cash balances, which are denominated in the CASH stablecoin.
Under the arrangement, Kalshi handles customer verification, account management and trade execution, while Phantom provides access through its app.
Regulatory relief and rollout
The launch follows no-action relief granted by the Commodity Futures Trading Commission in March, which allows Phantom to connect users to regulated markets without registering as an introducing broker, subject to certain conditions.
The service is rolling out through a new Predict tab in Phantom. Availability varies by state and market category. Eligible US users can view live market data, sports scores and market discussions before placing trades through an interface similar to a cryptocurrency token swap.
Legal dispute continues
Phantom’s entry comes amid a widening legal dispute over prediction markets in the US. On Monday, the CFTC sued Utah after the state challenged Kalshi’s event contracts under its gambling laws, adding to a series of cases over whether federal derivatives regulation supersedes state gambling laws.
Despite the legal uncertainty, trading activity continues to grow. Kalshi recorded $10.8 billion in crypto contract volume over the 30 days ending Oct. 27, up 19.6% from the previous period, according to data compiled by DeFi Rate.
