Phantom Brings Regulated Prediction Markets Into the Wallet — A New Way to Bet on Real-World Events

A fast change inside your wallet that could reshape how retail crypto traders place bets

Phantom, the popular crypto wallet for the Solana ecosystem, has added a built-in link to Kalshi’s regulated prediction markets. For users, the change is simple: you can now open short, event-based contracts — think yes/no markets on elections, economic data, or company milestones — without leaving the Phantom app. The markets are run on Kalshi’s regulated platform, so contracts settle under a U.S. framework rather than an unregulated DeFi protocol.

The rollout is immediate for users in supported regions. Phantom’s interface will show Kalshi event listings and let wallet holders stake small positions, see odds, and follow payouts. The key change for everyday users is convenience: no separate account, no unfamiliar onboarding flow, and the trade appears inside the same wallet where users hold tokens. That makes prediction markets feel like just another feature of modern crypto tools, not a separate hobby for specialists.

How Kalshi contracts sit inside Phantom: custody, execution and fees explained

Under the hood, Phantom is not creating new on-chain derivatives. Instead, it embeds Kalshi’s contracts through a secure integration. When a user clicks an event in Phantom, the wallet connects to Kalshi’s platform and routes the order. Execution, matching and settlement happen off the wallet on Kalshi’s regulated system. Phantom handles the wallet-side flow and a light custody handoff: users sign transactions in Phantom that authorize the order, but the resulting contract resides and settles on Kalshi’s books.

This is not tokenizing the event onto Solana as an on-chain token that anyone can trade without Kalshi. Rather, Phantom acts as a streamlined front end and custody bridge. Users will see the market price and position inside Phantom, but the legal counterparty and final settlement are Kalshi’s responsibility. That matters for cashflows and for who bears credit risk.

Fees are layered. Kalshi will charge its normal market fees and the spread inherent in prediction markets. Phantom may add a small interface or convenience fee for routing trades from the wallet, though initial messaging suggests any extra charge will be modest to encourage adoption. Settlement is simple: winning positions pay out in fiat-equivalent balances on Kalshi’s platform, which Phantom then displays. If you fund a position with stablecoin or crypto, there will be conversion steps handled inside the flow.

Who this helps and who might lose out — liquidity, flows and secondary knock-ons

This integration is a clear win for retail traders who want quick, low-friction access to event betting without signing up at a separate exchange. Phantom’s large active user base gives Kalshi a ready pool of new customers, and higher participation tends to tighten spreads in markets that were previously thin. For market makers and professional liquidity providers, this means fresh order flow and new venues to quote — a likely boost to turnover and fee income.

Exchanges and decentralized prediction markets should watch closely. Centralized venues that host prediction markets may see trading shift toward wallet-native options that feel more embedded in users’ daily crypto experience. On the other hand, fully on-chain markets that rely on tokenized event contracts could lose volume if users prefer the regulated settlement Kalshi offers inside a familiar wallet UI.

Related tokens and derivatives could feel the effects too. Anything that tracks sentiment or event exposure — volatility tokens, short-term altcoin hedges, or gaming-focused assets — may see increased trading around major events. That said, initial flows will likely concentrate on headline events with broad appeal: elections, major macro prints, and high-profile company events where retail attention spikes.

Why the regulators will pay attention and where limits will show up

Kalshi is one of the few firms running prediction markets under U.S. regulatory oversight. That status brings rules that do not apply to many crypto-native betting products. Markets in Phantom that tap Kalshi must obey geographic restrictions, know-your-customer checks, and limits on market types. In practice, some countries or U.S. states may be blocked from certain events, and users will face identity checks at points in the flow.

Regulators will watch several things: whether the integration exposes users to gambling in jurisdictions that forbid it, whether funds routing creates money-transmission issues, and whether Phantom’s wallet-display of positions creates misleading impressions about custody. Regulators might also examine how clearly Phantom distinguishes Kalshi’s regulated products from other unregulated DeFi offerings available in the wallet.

Key risks to track and the signals traders should watch next

The biggest practical risks are legal limits, custody clarity, and liquidity surprises. Users who assume they own an on-chain token could be surprised when settlement and custody are handled off-chain by Kalshi. That counterparty risk is small because of Kalshi’s regulated footing, but it is not zero.

Watch these metrics: trading volume on Kalshi markets linked from Phantom; spreads and settled volume around big events; any regional registration or access-block notices from Phantom or Kalshi; and error rates or UX reports from early users. A spike in failed orders or complaints about unclear settlement flows would be an early red flag.

For investors, this is a cautious positive. Phantom expands utility and could pull more active traders into its ecosystem, which benefits wallets and wallet-linked services. Kalshi gains retail reach and likely more fee income. But the setup raises questions that could trigger scrutiny or technical friction. The sensible stance is measured optimism: useful innovation, but one that must prove clean execution and clear legal boundaries before it changes the game for good.

Sources

• businesswire.com
• cointelegraph.com
• cointelegraph.com
• cointelegraph.com
• cointelegraph.com