Summary
- Binance.US has applied to the CFTC for approval to offer prediction market services in the US.
- Combined monthly trading volume at Kalshi and Polymarket surged more than fourfold to $72 billion in September from $17 billion in January.
- Analyst Patrick Moley said offering other products helps companies endure the crypto winter.
Forecast Trend Report by Period
Binance.US, the US arm of global cryptocurrency exchange Binance, is seeking to enter the domestic prediction market.
The Financial Times reported on October 21 that Binance.US recently applied to the Commodity Futures Trading Commission for authorization to offer prediction market services. The newspaper also reported that Blockchain.com, a UK crypto company, filed for the same approval last week.
Crypto firms have been accelerating their push into prediction markets. Bullish, a US cryptocurrency exchange, recently applied to the CFTC for approval to offer prediction market services. Coinbase partnered with Kalshi earlier this year.
The prediction market industry is growing rapidly. Combined monthly trading volume at Kalshi and Polymarket jumped more than fourfold to $72 billion in September from $17 billion in January, according to The Block. By contrast, spot cryptocurrency trading volume fell 18% over the same period.
"Retail-focused platforms are broadening their product offerings to retain existing customers and attract new ones," Patrick Moley, a senior research analyst at Piper Sandler, said. He added that offering other products helps companies weather the "crypto winter."
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul