Kalshi announced Friday it will integrate its CFTC-regulated prediction markets into Phantom, a cryptocurrency wallet with more than 20 million users. The partnership allows Phantom users to trade event contracts on political, economic, sports and cultural outcomes directly within their wallets without establishing separate Kalshi accounts.
What Happened: Wallet Integration
Kalshi CEO Tarek Mansour said the integration opens "a major new channel for growth by bringing our markets to millions of crypto-native users who want to express opinions on real-world events."
Users can open positions using assets already supported in the wallet, including Solana-based tokens and Phantom's CASH stablecoin.
Phantom CEO Brandon Millman said the company built its wallet "to make crypto feel intuitive for everyone, and now we are bringing that same simplicity to prediction markets."
The integration places Kalshi's markets alongside other financial tools in an interface users already navigate regularly.
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Why It Matters: Market Competition
The deal positions Kalshi to compete more directly with Polymarket, which began rolling out a U.S.-specific app to waitlisted users this month following CFTC clearance.
Kalshi now has distribution into the same crypto-native environment where Polymarket built much of its user base.
Legal challenges continue mounting across multiple states. Massachusetts asked a judge Dec. 9 to issue an injunction blocking Kalshi from offering sports event contracts in the state, with Assistant Attorney General Louisa Castrucci arguing that "a sports wager by any other name is still a sports wager."
A judge in Nevada ruled in November that Kalshi must comply with state gaming rules, rejecting arguments that federal commodities regulation preempts state enforcement.
Ohio and New Jersey have cited the Nevada ruling to argue sports event contracts should be treated as sports betting under state law.
Kalshi also faces a class-action lawsuit alleging users were effectively betting against the house rather than participating in a neutral marketplace.
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