Phantom clients will finance their transactions using CASH stablecoins, though specific market limitations will apply in Washington, Nevada, and Michigan.
Digital wallet provider Phantom is launching Kalshi prediction markets for clients in the United States, enabling them to trade event contracts directly inside the application.
This rollout commences on Friday, October 23, with availability broadening across the upcoming weeks. Phantom customers will be required to finish identity verification on Kalshi.
The release arrives as several states dispute Kalshi’s assertion that federal oversight shields its event contract products from local gambling statutes. When asked if these conflicts caused worries for Phantom, General Counsel Kevin Jacobs stated the firm felt at ease proceeding.
“Our viewpoint is that the CFTC’s authority here is definite,” Jacobs informed The Block. “As long as our engagement with these assets aligns with our no-action position, we feel confident and secure participating in this endeavor,” he stated.
Back in March, the Commodity Futures Trading Commission provided Phantom a conditional “no action” document, exempting it from mandatory broker registration. Subsequently, last month, the CFTC broadened this exemption to encompass other software developers.
Jacobs noted that Phantom will obey state-level restrictions while the litigation unfolds, adding that he anticipates the Supreme Court will eventually deliver the final ruling.
Market access and fees
Phantom announced it will initially restrict sports markets inside Michigan; sports, politics, elections, and entertainment in Nevada; and those categories in addition to culture, technology and science, geopolitics, and mentions within Washington. These limitations may evolve as their respective legal matters progress through the courts.
Kalshi is supplying its complete inventory to Phantom, and Phantom decides which specific markets to present, explained Max Crowley, Kalshi’s vice president of business development, speaking to The Block. Crowley chose not to comment regarding ongoing state lawsuits.
Traders will fund their positions using CASH, the dollar-pegged stablecoin created by Phantom, via their designated Phantom Cash accounts. Jacobs further mentioned that “additional payment methods will arrive soon.”
Capital moves over to Kalshi and gets changed into fiat currency for clearing purposes, whereas cash withdrawals and payouts flow back to the users’ Cash accounts.
Phantom cited a prediction fee amounting to $0.02 per contract, alongside a minor network charge for transferring funds to Kalshi. Users will review a full cost breakdown prior to approving any trade or withdrawal.
Crowley expressed his expectation that the collaboration will draw additional users to Kalshi, boost liquidity, and enhance its market data.
According to metrics from The Block, Kalshi has generated over $291 billion in trading volume throughout the current year. October volume has hit $55.33 billion with nine days remaining in the month, positioning it to potentially exceed September’s peak monthly volume of $59.32 billion.
Kalshi monthly volume year to date. Source: The Block.
Originally published at https://www.theblock.co/news/markets/2026-10-23-phantom-rolls-out-kalshi-prediction-markets-us-421652.
