Crypto exchanges are rapidly launching prediction markets as digital token prices endure a prolonged downturn. British firm Blockchain.com recently applied for a US licence to offer regulated prediction markets, while Binance US has also sought regulatory approval. Following Coinbase, Crypto.com, and Gemini, these platforms aim to diversify revenue amid falling crypto prices.
Prediction markets have surged in popularity among US retail traders, who bet on events like sports, elections, and central bank decisions. Trading volumes on Polymarket and Kalshi jumped from $17bn in January to $72bn in September, while spot crypto volumes fell 18%.
Companies are either building their own platforms or partnering with existing players. Crypto.com spun out its prediction markets unit, OG.com, and partnered with Robinhood. Coinbase partnered with Kalshi, and Bullish has applied for a US licence. However, legal challenges persist—Michigan regulators recently forced Coinbase to halt event contracts for state users.
Source: Financial Times Companies · Summarized by HeadlinesBriefing