Kalshi Challenges Coinbase and Robinhood with Plan to Introduce Crypto Perpetual Futures

Kalshi, a prediction markets platform, is expanding its services to include crypto trading in the US, according to a report by The Information, thereby extending beyond its core prediction markets business amidst intensifying competition in both sectors. The platform intends to initially offer perpetual futures linked to crypto tokens such as bitcoin. Perpetual futures are a type of derivatives 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 positions Kalshi in direct competition with crypto platforms like Coinbase, which has been expanding its derivatives and prediction market offerings. Kalshi's expansion is taking place as US regulatory conditions begin to shift, allowing for products that have largely been traded outside the country to enter the market. The company already holds multiple licenses from the Commodity Futures Trading Commission and has recently secured approval for margin trading, positioning it to enter the derivatives market. The firm is expected to start with crypto-linked perpetuals but may extend this 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.