Key Takeaways:
Prediction markets platform Polymarket is expanding into trading of perpetual futures contacts, the company said Tuesday. The announcement came on the heels of a report from The Information that its main rival Kalshi has plans to offer crypto trading, including perpetuals. These are futures contracts that stay open indefinitely, allowing traders to hold leveraged exposure and exit anytime they want as long as they have enough funds to maintain it.
"We price the future. Now you can lever it," Polymarket said in a post on X, announcing a sign-up for early access. The platform's video teaser showcased leveraged trading on assets including Bitcoin, Nvidia, and gold.
The expansion pits the two platforms against crypto giants like Coinbase, Robinhood, and Kraken, which have all added prediction markets to their offerings in the past year. While not widely available in the U.S., perpetual futures, or "perps," are the most popular product in crypto, with the top centralized exchanges registering $86.2 trillion in annual volume in 2025, a 47% increase from the previous year, according to CoinGecko. Kalshi is reportedly finalizing a $1 billion funding round at a $22 billion valuation, while Polymarket is raising at a valuation of around $15 billion.
The move into derivatives comes as U.S. regulators appear to be preparing a framework for such products. Commodity Futures Trading Commission (CFTC) Chairman Michael Selig said last month that the agency plans to allow these contracts in the coming weeks, a shift that could bring a significant portion of offshore trading volume onshore. Kalshi, which already holds multiple CFTC licenses and recently secured approval for margin trading, is well-positioned to capitalize on this regulatory opening. The firm plans to launch its crypto perpetuals on April 27.
This convergence creates a new competitive threat for established players. Coinbase, which acquired derivatives exchange Deribit for $2.9 billion to build its U.S.-regulated futures business, does not yet offer true perpetuals to American traders. The entry of regulated and well-funded prediction markets into its core business area adds another layer of competition at a time when crypto trading volumes have slowed.
Polymarket, built on the Ethereum and Polygon blockchains, has seen its user base and volume explode in 2024, driven by crypto-native traders. Kalshi, meanwhile, has been expanding its offerings beyond politics and sports, recently adding a suite of commodities contracts. By tapping into the massive demand for perpetual futures, both platforms are aiming to capture more consistent trading volume and attract a broader base of speculative retail traders.
This article is for informational purposes only and does not constitute investment advice.
