Kalshi To Offer U.S. Stock And Commodities Trading

Prediction market Kalshi is set to introduce U.S. customers to the trading of single-stock perpetual futures contracts, alongside betting on agricultural commodities prices. The move is seen as Kalshi's attempt to compete with conventional financial markets. The company, based in New York, is seeking regulatory approval to list contracts on major U.S. stocks like Tesla and Nvidia. Kalshi is also exploring partnerships with international brokerage Alpaca.

The company has reached out to both the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) for joint regulation of its never-ending futures contracts. Known as perpetual futures, or perps, these leveraged contracts allow speculation on stock price movements without an expiration date.

They are often compared to options trades but without a specified ending date. Kalshi's introduction of such contracts has drawn attention from regulators and industry leaders due to the amplified risks these contracts present.

Kalshi is also expanding its offerings to include perps tied to agriculture commodities like corn and wheat. This step follows Kalshi's request for approval to offer perpetual futures contracts on crude oil prices. Unlike crypto-linked perpetual futures that trade continuously, Kalshi's single-stock contracts would initially trade for 23 hours a day, five days a week. While perpetual futures have historically been linked to cryptocurrencies, they have increasingly been applied to other market segments in recent months.

Prediction markets like Kalshi allow individuals to wager on the results of real-world events, ranging from sports and elections to wars and weather patterns. Kalshi remains a privately held company with no publicly traded stock.