Phantom Integrates Prediction Markets, Spurring New Crypto Trading Layer

Phantom Prediction Market is now open to select users

Phantom, one of the most popular crypto wallets with over 20 million users, has opened its Phantom Prediction Markets to a select group of users. The platform, built on Kalshi's regulated prediction market framework, allows users to trade on outcomes in sports, crypto, and culture. This development marks a significant step in embedding speculative trading directly into crypto wallets.

The feature uses tokenized positions backed by Solana or Phantom's CASH stablecoin, streamlining the process of trading real-world events without leaving the wallet. Phantom CEO Brandon Millman described the update as bringing the same intuitive experience of token swaps to prediction markets.

Kalshi's regulatory compliance under the U.S. Commodity Futures Trading Commission adds another layer of legitimacy to the offering. Phantom and Kalshi plan to expand the feature to more users as regulatory and platform readiness allow.

Why This Integration Matters

The integration of prediction markets into a major crypto wallet highlights a growing trend in decentralized finance (DeFi). Traditionally, prediction markets required users to navigate separate platforms or face regulatory uncertainty. Phantom's approach eliminates friction by allowing users to trade directly within their existing crypto interface.

Phantom users can now access live odds, real-time updates, and even engage in community chat rooms about specific markets according to a recent analysis. This feature is particularly appealing to casual crypto users who may not be familiar with complex trading platforms.

Analysts from Citizens Bank note that prediction markets are evolving beyond niche speculation into a potential mainstream asset class. By making these markets more accessible, Phantom could help drive broader adoption among both retail and institutional investors.

Prediction markets are rapidly growing in volume and user base. In 2025, total transaction volumes are projected to reach a staggering $40 billion, a 400% increase from 2024. Platforms like Kalshi and Polymarket are seeing explosive growth, particularly in sports and political event contracts.

For investors, the integration of prediction markets into Phantom could offer new hedging and information-gathering tools. Event-based contracts allow investors to trade directly on real-world outcomes, from Federal Reserve decisions to major sports events. This is a shift from traditional proxies like futures or ETFs.

Institutional investors are also showing interest. Event-driven hedge funds may use prediction markets for M&A or litigation events, while macro funds could use them as targeted hedges. Quantitative firms might treat prediction markets as high-frequency data feeds, mapping probabilities to price moves across asset classes.

Risks to the Outlook

Despite the potential, several risks remain. Regulatory uncertainty and fragmented rules could hinder growth in some jurisdictions. Liquidity and market depth are also concerns, especially for less popular markets.

Prediction markets can be highly volatile, and users must understand that every trade carries risk. While the interface may feel casual, the financial implications are not trivial. Additionally, the integration is still in early access, and full adoption may depend on how well the platform scales and maintains compliance.

The Bigger Picture

Phantom's move reflects a broader shift in the crypto ecosystem. Prediction markets are no longer just tools for speculation; they are being integrated into mainstream financial infrastructure. Platforms like Robinhood, Gemini, and Coinbase are also entering the space, signaling that prediction markets may soon become a standard financial tool.

This evolution is driven by a desire to make crypto feel more intuitive for everyday users. As prediction markets mature, they could become a new layer of financial infrastructure-one that reflects real-time sentiment, risk, and collective intelligence according to market analysis.

For now, Phantom's early access rollout is a test of this vision. If successful, it could pave the way for broader adoption of prediction markets across crypto and traditional finance.