Kalshi Set to Challenge Coinbase and Robinhood with Crypto Perpetual Futures Launch

According to a report by The Information, Kalshi is expanding its services to include crypto trading in the US, thereby moving beyond its core prediction markets business amidst intensifying competition in both sectors. The platform plans to introduce perpetual futures tied to crypto tokens such as bitcoin, as revealed by people familiar with the matter. Perpetual futures are a type of derivative contract that enables traders to bet on an asset's price without owning it and without a fixed expiration date. Unlike traditional futures, perpetuals can be held indefinitely as long as traders maintain sufficient collateral, with prices aligned with the underlying asset through funding payments between long and short positions. This move would place Kalshi in direct competition with crypto platforms like Coinbase, which has been expanding its derivatives and prediction market offerings but does not yet offer true perpetual futures in the US. Kalshi's expansion comes as US regulatory conditions begin to shift, allowing for products that have largely been traded outside the country. The company holds multiple licenses from the Commodity Futures Trading Commission and has recently secured approval for margin trading, positioning it to enter the derivatives market. Kalshi is expected to start with crypto-linked perpetuals but may extend the model to other asset classes over time. This development reflects the growing overlap between prediction markets and crypto trading platforms, which are increasingly competing for the same users. As major crypto exchanges introduce prediction market products and crypto trading volumes decline, activity in prediction markets has surged, prompting platforms like Kalshi to broaden their offerings and compete for a shared base of traders.