- Phantom’s new feature, Phantom Prediction Markets, enables tokenized event trading across multiple categories.
- Crypto exchanges such as Gemini and Coinbase are also moving into U.S. prediction markets.
- Regulatory challenges persist, with recent legal actions involving the state of Connecticut and Kalshi.
Crypto wallets are increasingly acting as gateways to real-world financial activity, and Phantom’s latest initiative highlights that shift.
The crypto wallet application has partnered with the regulated prediction market Kalshi to integrate event-based trading directly into the wallet interface.
The integration allows users to participate in outcome-driven markets without moving funds to external platforms.
It also reflects a broader push by crypto companies to combine on-chain infrastructure with regulated financial products tied to real-world events, from elections and economic indicators to sports and cultural moments.
The partnership, which was announced on Friday, introduces a new in-wallet product called Phantom Prediction Markets.
The feature lets users browse live events, monitor price movements, and trade tokenized positions linked to Kalshi’s markets, all within Phantom’s existing interface.
The move positions wallets not merely as storage tools but as active trading hubs.
How the Phantom–Kalshi integration works
Phantom users will be able to discover trending event markets and track live odds directly in the wallet.
The integration enables trading of tokenized positions that reference Kalshi’s regulated event contracts, covering categories such as politics, economics, sports, and culture.
Rather than navigating separate trading platforms, users can place and manage positions from the same wallet they already use for on-chain activity.
The structure relies on tokenized representations tied to Kalshi’s markets, linking decentralized wallet infrastructure with regulated event trading.
Phantom described the product as a way for users to engage with topics they care about in real time, using crypto-native tools to interact with real-world outcomes.
The rollout expands Phantom’s growing feature set as competition among wallet providers intensifies.
Prediction markets draw crypto exchanges
Phantom’s announcement comes as crypto exchanges and affiliated firms rapidly establish a presence in U.S. prediction markets.
On Thursday, Gemini Titan, an affiliate of the crypto exchange Gemini, received a designated contract market license from the U.S. Commodity Futures Trading Commission (CFTC).
Gemini said the license will enable it to offer trading in event contracts through its web platform.
Following the announcement, Gemini shares rose by nearly 14% in after-hours trading, reflecting investor interest in the segment.
Prediction markets have attracted attention as traders seek alternative ways to express views on macroeconomic indicators, elections, and other headline-driven events—often outside traditional derivatives markets.
Regulatory pressure shapes the landscape
Despite growing adoption, prediction markets continue to face regulatory scrutiny in the U.S.
On December 4, the Connecticut Department of Consumer Protection issued cease-and-desist orders to Robinhood, Kalshi, and Crypto.com, alleging they offered unlicensed online gambling services.
Kalshi responded the next day by filing a lawsuit against the state agency, arguing that its event contracts are permitted under federal law.
A federal judge in Connecticut later ordered the agency to suspend enforcement actions against Kalshi, temporarily blocking the cease-and-desist order.
The ruling provides short-term relief for Kalshi, but legal questions surrounding prediction markets remain unresolved.
As wallets, exchanges, and regulated market operators push into this space, the interplay between innovation and regulation will determine how widely prediction markets integrate with mainstream crypto services.