Phantom Turns Its Wallet Into a Regulated Prediction-Trading Hub
A new wave of crossover between crypto wallets and real-world financial products is emerging, and Phantom is stepping directly into that space.
The wallet company has begun weaving regulated prediction markets into its interface through a partnership with Kalshi, marking one of the strongest attempts yet to merge onchain trading with U.S.-regulated event markets.
- Phantom is embedding Kalshi’s federally regulated event markets directly into its wallet through tokenized positions.
- Major exchanges, including Gemini and reportedly Coinbase, are entering the U.S. prediction-market space.
- State regulators are challenging prediction platforms, but early legal rulings temporarily favor federally licensed operators.
Instead of sending users to external platforms, Phantom now surfaces trending questions, live probabilities and tradable outcomes inside the wallet itself. Behind the scenes, positions represent tokenized derivatives tied to Kalshi’s federally regulated event contracts.
The idea is simple: the wallet becomes a one-stop environment where users can move from holding tokens to speculating on elections, macroeconomic announcements, sports results or cultural moments. Phantom CEO Brandon Millman called it a step toward letting users “trade what matters to them without leaving the environment they already use.”
Major Crypto Firms Pile Into Prediction Markets
Phantom’s move doesn’t happen in isolation. Large exchanges are trying to secure their own foothold in the high-growth U.S. event-contract market.
Gemini Titan — a new affiliate of Gemini — recently obtained a designated contract market license from the Commodity Futures Trading Commission, giving the firm the same regulatory status as Kalshi. Its approval triggered a spike in market interest, lifting Gemini-related shares after hours.
Coinbase is also rumored to be preparing a similar product. Unreleased screenshots surfaced in November showing an internal prediction-market interface, and Bloomberg has reported that Coinbase plans to unveil both prediction markets and tokenized equities during its upcoming livestream. The company has not confirmed the details, but it has acknowledged that new trading products are being announced this week.
A Sector Expanding… and Facing Resistance
Despite rapid adoption, prediction markets are also encountering political and regulatory friction at the state level.
Connecticut’s consumer protection authorities issued cease-and-desist letters to several platforms — including Kalshi, Crypto.com and Robinhood — accusing them of offering unlicensed gambling. Kalshi responded within 24 hours by filing a lawsuit, arguing that federally regulated event contracts fall outside state gambling rules.
A federal judge has temporarily blocked Connecticut from taking enforcement action against Kalshi while the court reviews the case, setting up a broader test of who ultimately regulates prediction markets in the United States.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
