Kalshi takes on Coinbase, Robinhood with new plan to offer crypto perpetual futures: The Information

Kalshi is launching crypto perpetual futures in the U.S., directly competing with Coinbase and Robinhood, amid growing demand for digital asset derivatives.

In a bold move to capture the lucrative digital asset derivatives market, prediction market platform Kalshi is set to launch crypto perpetual futures in the U.S. This shift marks a significant expansion from its core prediction market offerings, placing it directly in competition with established players like Coinbase and Robinhood. This change comes at a time when the demand for crypto derivatives is soaring, despite a backdrop of softer trading volumes across the crypto landscape. What Are Crypto Perpetual Futures? Kalshi plans to introduce perpetual futures tied to major cryptocurrencies, including bitcoin, which is currently priced at $77,567.37 . This type of derivatives contract allows traders to speculate on the price movement of an asset without the need to own it, eliminating the fixed expiration date characteristic of traditional futures. Essentially, perpetual futures can be held indefinitely as long as traders maintain necessary collateral, aligning the prices of the futures with the underlying asset via funding payments between long and short positions. Why Is This Move Significant? This launch highlights a growing convergence between cryptocurrency exchanges and prediction markets. As platforms like Coinbase, Crypto.com, and Gemini increasingly look to capture a broader range of traders, the competition is expected to heat up. Despite Coinbase's recent steps towards offering derivative products, it has yet to introduce true perpetual futures in the U.S.; instead, it has launched "perpetual-style" futures contracts with long-dated expirations. Kalshi’s foray into this domain could change the competitive dynamics significantly. How Is Kalshi Positioned? Kalshi stands uniquely poised in this competitive landscape, having secured multiple licenses from the Commodity Futures Trading Commission (CFTC) and recently gaining approval to provide margin trading. With these licenses, they are well-prepared to deliver crypto-linked perpetuals initially and potentia