Phantom Wallet Brings Kalshi Prediction Markets to U.S. Users

Phantom, one of the most popular self-custody crypto wallets, has started offering regulated prediction markets to users in the United States.

How it works

In a company blog post Friday, Phantom said U.S. access will expand over the next few weeks through its first U.S. integration with Kalshi, a CFTC-registered exchange. Users verify their identity inside the app through a third-party service. Kalshi then approves and holds their trading accounts and executes trades sent from Phantom.

The regulatory groundwork

Phantom said it asked the Commodity Futures Trading Commission earlier this year whether a self-custody wallet app needed to register as an introducing broker in order to route users to a regulated exchange. In March, CFTC staff issued a no-action letter saying it would not need to, under certain conditions, and in September the agency extended similar relief to comparable software providers.

Kalshi welcomed the launch. "Phantom did the regulatory work up front, and it's a model for how prediction markets can reach more people," Max Crowley, Kalshi's vice president of business development, said in Phantom's announcement.

The rollout comes as several states challenge prediction markets in court, The Block reported, though Phantom said it is comfortable proceeding.

Why it matters

The launch is a notable step for self-custody wallets, which have often been limited in the regulated products they can offer. It also extends the reach of prediction markets, one of the fastest-growing corners of crypto-linked trading.