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Kalshi moves toward margin trading with new regulatory approval

Crypto Briefing
Kalshi secured regulatory approval for margin trading, enhancing its appeal to institutional investors.

Summary

Kalshi has obtained regulatory approval for margin trading through an affiliate's futures commission merchant license, signaling a move to attract hedge funds and institutional investors. This development follows a recent financing round where Kalshi was valued at $22 billion, reflecting strong investor confidence in prediction markets evolving into significant trading and hedging venues. The platform is rapidly growing, with weekly notional volume exceeding $3 billion, and is building institutional infrastructure by partnering with firms like FIS and Tradeweb. This expansion occurs amid increased regulatory scrutiny, with industry executives calling for clearer rules as prediction markets cover diverse contract types, and new legislation potentially banning sports-related event contracts.

(Source:Crypto Briefing)