Kalshi Enters Crypto Market with Perpetual Futures, Challenging Coinbase and Robinhood

Kalshi, a US-based prediction markets platform, is poised to expand its services by introducing crypto trading, according to a report by The Information, as it seeks to diversify beyond its core business amidst intensifying competition in both the prediction and crypto markets. The platform intends to initiate this venture by offering perpetual futures contracts tied to cryptocurrencies such as Bitcoin. Perpetual futures are a type of derivative that enables traders to speculate on asset prices without actual ownership and without a fixed expiration date, with prices aligned through funding payments. This move positions Kalshi in direct competition with crypto platforms like Coinbase, which has been expanding its derivatives offerings but does not yet offer true perpetual futures in the US. Kalshi's expansion into derivatives comes as US regulatory conditions begin to favor such products, with the company already holding multiple CFTC licenses and recently gaining approval for margin trading. The firm plans to start with crypto-linked perpetuals but may extend this model to other asset classes. This development reflects the increasing overlap between prediction markets and crypto trading, with both competing for the same user base as crypto trading volumes decline and prediction market activity surges.