In a significant development for both crypto enthusiasts and traders, Phantom Wallet has officially rolled out the ability for US users to engage with Kalshi’s prediction markets, marking a new era for digital asset trading. This feature, which began on October 23, allows users to trade event contracts directly within the Phantom app, a notable integration that promises to enhance user experience and accessibility in the ever-evolving crypto landscape.
Users can now fund their trades primarily using Phantom’s CASH stablecoin, a dollar-pegged asset designed to facilitate smooth transactions. However, before diving into this innovative trading environment, users must complete Kalshi’s Know Your Customer (KYC) verification process and either link or create a Kalshi account. This requirement underscores the commitment of both Phantom and Kalshi to ensure compliance with regulatory standards.
Phantom operates as a non-custodial wallet, meaning it does not hold user funds directly. Instead, users are considered direct members of Kalshi, which operates as a CFTC-registered Designated Contract Market and derivatives clearing organization. This structure fosters a secure trading ecosystem where users can trade confidently, knowing their assets are managed within regulated frameworks.
Understanding Trading and Fees
Trading on Kalshi through Phantom involves users funding their trades with CASH, which is then converted to fiat for settlement once moved to Kalshi. It’s worth noting that while the platform offers a competitive fee structure of just $0.02 per contract, users should be aware of potential network fees incurred during the transfer of funds to Kalshi.
For those interested in cashing out or collecting winnings, amounts will be returned to their CASH accounts, ensuring a seamless flow of transactions. Additionally, a portion of the exchange fees from Phantom trades will be shared with the wallet company, providing an incentive for ongoing partnership and collaboration.
However, trading comes with inherent risks. Phantom has outlined several potential challenges users may face, including capital loss, market volatility, liquidity risks, and the regulatory landscape. As highlighted by Max Crowley, Kalshi’s vice president of business development, the partnership is expected to enhance liquidity and attract more users, which could ultimately improve market data quality.
State Restrictions and Legal Landscape
The launch of this feature arrives amid ongoing legal challenges in several states regarding Kalshi’s operations, particularly concerning state gambling laws. Phantom has indicated that it is prepared to navigate these complexities confidently, maintaining adherence to state restrictions while the legal disputes progress. In line with this, Phantom will block access to specific market categories in states like Michigan, Nevada, and Washington.
The restrictions include the blocking of sports markets in Michigan and various categories in Nevada and Washington. These measures may evolve as legal proceedings unfold, with Phantom committed to ensuring compliance with both state and federal regulations.
Phantom initially introduced Kalshi’s prediction markets in December of the previous year, but the current iteration broadens access for US users while continuing to limit participation in certain jurisdictions. The CFTC’s no-action relief granted to Phantom in March 2026 has been pivotal in this expansion, allowing the wallet to connect users to registered exchanges without needing to register as a broker.
Kalshi itself has seen impressive trading volume, having recorded over $291 billion this year alone, with October’s volume already surpassing $55.33 billion. This surge underscores the growing interest in prediction markets and the potential for innovative financial products within the crypto space.
