Key Highlights
- Kalshi is reportedly planning to enter crypto trading by offering perpetual futures on assets like Bitcoin.
- The move could put Kalshi in direct competition with big exchanges like Coinbase and Kraken.
- Potential regulatory changes in the U.S. may allow these products to be offered domestically.
Kalshi, a prediction markets platform, is reportedly planning to expand into crypto trading in the United States by launching perpetual futures contracts.
According to a report published by The Information on Tuesday, the platform’s initial offering would focus on perpetual futures tied to digital assets like Bitcoin. These contracts let traders bet on whether the price of an asset will go up or down without actually owning the asset.
Meanwhile, it is important to note that the platform has so far not confirmed or denied the expansion plans.
How perpetual futures work
Unlike normal futures contracts, perpetual futures do not have an end date, meaning traders can keep their positions open for as long as they want, as long as they have enough funds in their account to support the trade.
The report, citing anonymous sources, stated that, “Kalshi will enter the crypto market by offering perpetual futures, the most popular type of trading products, on crypto tokens such as bitcoin.”
The report added that these types of crypto products have mostly not been available to traders in the United States. Instead, they are commonly used on overseas exchanges like Binance and Hyperliquid, where trading rules are different.
Regulation may open new doors
This reported move comes as U.S. regulators are starting to show more interest in allowing perpetual futures trading. Last month, Commodity Futures Trading Commission (CFTC) Chairman Michael Selig indicated that the agency is planning to allow perpetual trading in the country.
Kalshi already holds multiple CFTC licenses and has recently received approval that allows it to offer margin trading, which supports leveraged positions in trading. However, Kalshi has not publicly confirmed these expansion plans.
If implemented, the move would place Kalshi closer to crypto exchanges that are already moving into prediction markets. Coinbase, Crypto.com, and Gemini have introduced similar products, while Coinbase has also been working with Kalshi in certain areas.
At the same time, Coinbase has been expanding its derivatives offerings, though it does not currently offer full perpetual futures in the U.S. market.
Kalshi may also expand into other types of assets if the plan grows further, according to sources cited in the report.
Also Read: Coinbase Strengthens India Presence With USDC-INR Launch
