DriveWealth will combine Kalshi’s regulated prediction markets into its brokerage-as-a-service platform, enabling fintechs to supply occasion contracts alongside shares and ETFs.
Kalshi, which processes over $100 billion in annualized quantity, is increasing distribution by way of DriveWealth’s brokerage infrastructure.
As prediction markets transfer into the monetary mainstream, occasion contracts are rising as a brand new tradable asset class that would observe the adoption path of choices and crypto.
Digital buying and selling and brokerage firm DriveWealth is teaming up with prediction market platform Kalshi in a transfer to capitalize on the rising curiosity in occasions contracts. The New Jersey-based firm plans to combine Kalshi’s occasion contracts into its brokerage platform.
The combination permits shoppers utilizing DriveWealth’s brokerage-as-a-service platform to supply event-driven markets alongside extra conventional equities, ETFs, and different conventional asset courses throughout the identical interface.
Kalshi permits customers to commerce on the end result of real-world occasions resembling elections, financial indicators, climate, sports activities, and extra in a totally regulated setting. As a result of it affords funding alternatives primarily based on extremely publicized occasions resembling sporting and political occasions, Kalshi brings an approachable new asset class that has shortly change into mainstream. Kalshi at present attracts over $100 billion in annualized quantity.
Slightly than working purely as a standalone buying and selling venue, Kalshi has more and more positioned itself as infrastructure for fintech platforms searching for so as to add regulated occasion contracts to their product combine. “DriveWealth’s international attain and embedded brokerage infrastructure make them a really perfect companion to Kalshi,” mentioned Kalshi Co-founder and CEO Tarek Mansour. “Our objective is to supply main fintech platforms with extra entry to regulated prediction markets.”
The brand new integration additionally locations DriveWealth within the footsteps of Robinhood, which started integrating Kalshi’s prediction market platform into its investing app in August of final 12 months. Different funding platforms leveraging Kalshi embody WeBull and PrizePicks.
Providing an more and more fashionable asset class like prediction markets allows DriveWealth shoppers to draw new customers whereas deepening engagement with current traders who could at present commerce on exterior platforms. For finish customers, consolidating a number of funding alternatives inside a single platform simplifies portfolio monitoring and efficiency monitoring throughout markets. For DriveWealth shoppers, the addition modernizes their product providing whereas strengthening buyer retention and progress.
As prediction markets acquire regulatory readability and mainstream traction, DriveWealth sees the Kalshi integration as a solution to future-proof its brokerage infrastructure. “Our integration with Kalshi strengthens our potential to ship cutting-edge market alternatives to our companions,” mentioned DriveWealth CEO Naureen Hassan. “DriveWealth was constructed to energy the way forward for international investing by way of scalable, API-driven expertise, and Kalshi’s forward-thinking method to market design makes for a pure match. Collectively, we’re uniquely positioned to equip our companions with the most recent monetary improvements and next-generation market entry for his or her shoppers.”
Total, prediction markets are on a serious progress trajectory this 12 months. Prediction markets have advanced from area of interest educational instruments and offshore betting platforms into regulated investing instruments with rising institutional backing.
As retail traders more and more search other ways to develop their funds, prediction markets create a brand new class of tradable threat publicity. If distribution partnerships like these with Robinhood and DriveWealth proceed to scale, occasion contracts may observe a trajectory much like choices or crypto that have been as soon as fringe, however are actually embedded into fashionable product stacks.
Picture by Amit Lahav on Unsplash
Views: 103
