Kalshi Enters Crypto Perpetual Futures Market to Rival Coinbase and Robinhood

Kalshi, a platform known for its prediction markets, is expanding its services to include crypto trading in the US, as reported by The Information, marking a significant move beyond its core business amidst intensifying competition in both the prediction and crypto sectors. The company plans to introduce perpetual futures contracts tied to cryptocurrencies such as bitcoin, according to sources familiar with the matter. Perpetual futures are a type of derivative that allows traders to speculate on asset prices without owning the asset and without a fixed expiration date, with prices kept in line with the underlying asset through funding payments. This move positions Kalshi in direct competition with crypto exchanges like Coinbase, which has been expanding its derivatives offerings but does not yet offer true perpetual futures in the US. The expansion comes as US regulatory conditions begin to favor products that have mostly been traded offshore, with Kalshi holding multiple CFTC licenses and recently gaining approval for margin trading. The firm is expected to start with crypto perpetuals but may extend to other asset classes, and its competitor, Polymarket, has also announced plans to offer perpetual futures. This reflects the growing competition and overlap between prediction markets and crypto trading platforms, with both vying for the same user base as crypto trading volumes decline and prediction market activity surges.