Crypto wallet Phantom has begun rolling out prediction markets to users in the United States through an integration with event-contracts exchange Kalshi. The feature went live on Friday, Oct. 23, and Phantom said access will expand across the country over the coming weeks. The company detailed the launch in an official blog post.

Prediction markets allow users to trade contracts tied to the outcomes of real-world events, with each contract paying out according to whether the event occurs.

LATEST: ⚡ Phantom is rolling out Kalshi prediction markets to US users, letting them trade event contracts in the wallet app and fund positions with its CASH stablecoin. pic.twitter.com/qpz0uCu8gg

— CoinMarketCap (@CoinMarketCap) October 23, 2026

How the Integration Works

Phantom offers event contracts through a commercial partnership with KalshiEx. Users trade directly inside the Phantom app, but they must first complete Kalshi's know-your-customer verification and link or create a Kalshi account.

Phantom acts as a non-custodial interface and does not hold user funds. Instead, users become direct members of Kalshi, which is registered with the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market and a derivatives clearing organization. Designated Contract Markets are CFTC-registered venues where futures and event contracts are listed, while derivatives clearing organizations clear and settle the trades behind them. The structure effectively makes the wallet app a front end to a federally regulated exchange — a distribution model Kalshi expects to widen its user base and deepen liquidity.

Funding and Fees

Trades are funded primarily with CASH, Phantom's dollar-pegged stablecoin. Stablecoins of this kind are designed to hold a one-to-one peg with the US dollar, and here they act as the bridge between wallet balances and exchange settlement Funds move from Phantom Cash accounts to Kalshi, where they are converted into fiat for settlement, while cash-outs and winnings return to the Cash accounts.

Phantom quoted a prediction fee of $0.02 per contract, and a small network fee applies when funds are moved to Kalshi. Users will see a full breakdown before confirming a trade or cash-out.

Kalshi shares part of the exchange fees generated by Phantom trades with the wallet company. Phantom General Counsel Kevin Jacobs said "more ways to pay are coming soon," signaling that additional funding options are planned.

Phantom also disclosed risks for users. These include loss of capital, market volatility, liquidity risk, and counterparty and regulatory risk.

Max Crowley, Kalshi's vice president of business development, said Phantom "did the regulatory up front." He said Kalshi expects the partnership to bring more users and increase liquidity, and that it should improve the platform's market data. Kalshi is making its full market catalog available to Phantom, though Phantom decides which markets to display.

State Lawsuits and Restrictions

The launch comes as several states challenge Kalshi's claim that federal oversight overrides state gambling laws. Jacobs said Phantom is "confident and comfortable" moving forward and that the CFTC's jurisdiction is clear.

Phantom will still block certain market categories on a state-by-state basis. Sports markets are blocked in Michigan. In Nevada, the wallet will block sports, elections, politics and entertainment. Washington faces the broadest restrictions, with those categories plus culture, science and tech, mentions and geopolitics also unavailable.

These limits could change as the court cases move forward. Jacobs said Phantom will follow state restrictions while the disputes play out and expects the Supreme Court may ultimately have the final say.

Background and Trading Volume

Phantom first added Kalshi prediction markets in December of last year, though that version was limited for US users and several other regions. In June, the company moved new non-US positions to World Prediction Markets, a non-custodial protocol built on Solana.

The regulatory groundwork was laid earlier this year. The CFTC granted Phantom a conditional no-action letter in March 2026, allowing the wallet to connect users to registered exchanges without registering as a broker. Such letters are agency staff statements that enforcement will not be recommended for a described activity, provided its stated conditions are followed. Last month, the agency extended that relief to other software providers.

Kalshi has recorded more than $291 billion in trading volume this year, according to The Block data. October volume has reached $55.33 billion with nine days left in the month, putting it on pace to pass September's record of $59.32 billion.