- The new Phantom Prediction Markets feature enables trading of tokenized event contracts across multiple categories.
- Major crypto exchanges such as Gemini and Coinbase are also moving into the U.S. prediction market space.
- Regulatory challenges persist, with recent legal actions involving the state of Connecticut and Kalshi.
Crypto wallets are increasingly becoming gateways to real-world financial activity, and Phantom’s latest move underscores this trend.
The crypto wallet app announced a partnership with regulated prediction market operator Kalshi to integrate event-based trading directly into the wallet interface.
This integration lets users interact with outcome-driven markets without transferring funds to separate platforms.
It also reflects a broader push among crypto companies to blend on-chain infrastructure with regulated financial products tied to real-world events — from elections and economic data to cultural moments.
The partnership, announced Friday, introduces a new in-wallet product called Phantom Prediction Markets.
The feature allows users to browse live events, track price movements, and trade tokenized positions linked to Kalshi markets — all from within Phantom’s existing interface.
That shifts wallets from simple storage tools toward active trading hubs.
How the Phantom–Kalshi integration works
Phantom users can discover trending event markets and follow live odds directly inside 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.
Instead of navigating separate trading platforms, users can open and manage positions from the same wallet they already use for on-chain activity.
The setup relies on tokenized representations tied to Kalshi markets, bridging decentralized wallet infrastructure with regulated event trading.
Phantom describes the offering as a way for users to engage in real time with topics they care about, using crypto-native tools to interact with real-world outcomes.
The launch adds to Phantom’s expanding feature set as competition among wallet providers intensifies.
Prediction markets draw crypto exchanges
Phantom’s announcement comes as crypto exchanges and affiliated entities move quickly to establish a foothold in U.S. prediction markets.
On Thursday, Gemini Titan, an affiliate of crypto exchange Gemini, received a designated contract market license from the U.S. Commodity Futures Trading Commission.
Gemini said the license will allow it to offer event contract trading via its web platform.
Following the announcement, Gemini shares rose nearly 14% in after-hours trading, reflecting investor interest in the segment.
Prediction markets have gained traction as traders seek alternative ways to express views on macro indicators, elections, and other news-driven events, often outside traditional derivatives markets.
Regulatory pressure shapes the landscape
Despite growing adoption, prediction markets remain under regulatory scrutiny in the United States.
On December 4, the Connecticut Department of Consumer Protection issued cease-and-desist orders to Robinhood, Kalshi, and Crypto.com, accusing them of offering unauthorized online gambling services.
The next day Kalshi filed suit against the state agency, arguing that its event contracts are lawful under federal law.
A federal judge in Connecticut subsequently ordered the department to pause 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 regulators continue to adapt, the intersection of on-chain tools and regulated event trading will likely stay a focal point for industry development and policy debate.