Kalshi Challenges Coinbase and Robinhood with Crypto Perpetual Futures Plan

According to a report by The Information, Kalshi is expanding its services to include crypto trading in the U.S., moving beyond its core prediction markets business as competition in both sectors intensifies. The platform is planning to introduce perpetual futures tied to cryptocurrencies like bitcoin, as stated 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, which have a set settlement time, perpetuals can be held indefinitely, provided traders maintain sufficient collateral. Prices are kept aligned with the underlying asset through funding payments between long and short positions, making them a key product on many offshore crypto exchanges. Kalshi's move will place it in direct competition with crypto platforms such as Coinbase, which has been expanding its derivatives and prediction market offerings. However, Coinbase does not yet offer true perpetual futures in the U.S., although it has introduced 'perpetual-style' futures contracts with long-dated expirations and has expressed interest in bringing more advanced derivatives products onshore. Other exchanges are moving in a similar direction, highlighting a broader push to capture demand that has historically flowed to offshore venues. Kalshi's expansion comes as regulatory conditions in the U.S. begin to shift, opening the door for products that have largely traded outside the country. The company already holds multiple licenses from the Commodity Futures Trading Commission (CFTC) and recently secured approval to offer margin trading, positioning it to enter the derivatives market. The firm is expected to begin with crypto-linked perpetuals but could extend the model to other asset classes over time, according to one of the people. Kalshi competitor Polymarket also announced plans to offer perpetual futures on its platform, without providing additional details. This move reflects the growing overlap between prediction markets and crypto trading platforms, which are increasingly competing for the same users. Several major crypto exchanges, including Coinbase, Crypto.com, and Gemini, have introduced prediction market products, while crypto trading volumes have declined in recent months following a market downturn. At the same time, activity in prediction markets has surged, drawing both user engagement and investor capital. This convergence is pushing platforms like Kalshi to broaden their offerings as they compete for a shared base of traders.