Backpack Exchange Launches Beta Testing of Prediction Market Platform

Backpack Exchange, a cryptocurrency trading platform, has launched a private beta of its Unified Prediction Portfolio. The new feature allows users to trade, hedge, and quote across prediction markets within a single margin account. The platform's goal is to streamline capital usage and reduce the fragmentation of balances typically seen in prediction market trading.

The Unified Prediction Portfolio is not a wrapper for existing platforms like Kalshi or Polymarket, according to Backpack CEO Armani Ferrante. Instead, it is a native system where all risk and capital are tokenized. Ferrante emphasized the inefficiencies of current prediction markets, where traders are often forced to lock up capital for the duration of an event.

The beta test is currently limited to invite-only participants, with an initial focus on testing the platform's risk engine. As the beta progresses, new markets and mechanisms will be added.

Why Did This Happen?

Backpack is leveraging its experience in cryptocurrency trading and its connections to past crypto platforms, such as Alameda Research and FTX. The platform aims to provide a seamless experience for users who want to hedge their prediction market bets using perpetual futures and spot positions. This strategy aligns with a broader industry trend toward product integration in crypto exchanges.

How Did Markets Respond?

Prediction market platforms have faced increased regulatory scrutiny in recent months. Platforms like Polymarket and Kalshi have drawn attention for concerns related to insider trading and market integrity. Against this backdrop, Backpack's approach to integrating prediction markets with its broader trading ecosystem could attract users seeking more flexibility.

Backpack's beta announcement coincides with a period of growth for prediction markets. Kalshi reported $6.26 billion in trading volume in December 2025, and Polymarket reached $2.28 billion in the same period. However, regulatory uncertainty remains a challenge for the sector.

What Are Analysts Watching Next?

Analysts are closely watching how Backpack's unified portfolio performs in beta testing. The success of the platform will depend on its ability to handle complex risk scenarios and maintain liquidity across multiple market types. The platform's cross-margin and cross-collateralization features are key innovations that differentiate it from existing platforms.

Backpack's entry into prediction markets also raises questions about regulatory compliance. In India, for example, the Ministry of Finance is in early discussions with Sebi and the RBI to establish a regulatory framework for crypto exchanges. These developments may influence Backpack's expansion plans and the broader acceptance of prediction markets.

The platform's private beta phase provides an opportunity for Backpack to refine its risk engine and liquidity mechanisms. If successful, the platform could push other exchanges to develop similar integrated systems.

Backpack's Unified Prediction Portfolio represents a significant step in the evolution of crypto trading platforms. By combining spot, futures, and prediction markets in a single account, the platform is positioning itself as a leader in the next phase of digital asset trading.