Webull
Financial is expanding its digital investment platform to include binary event
contracts through a new partnership with Kalshi, the first CFTC-regulated
prediction market exchange, as demand for alternative trading instruments
continues to grow.
However, The
move occurs as the regulator scrutinizes Robinhood for offering the same
instruments.
Webull Teams Up with
Kalshi to Launch Prediction Market Trading
The
collaboration will enable Webull’s users to trade binary event contracts
directly through their existing trading platform, expanding into an emerging
asset class that has gained traction among retail investors.
“We
have continually focused on equipping our customers with the best products and
streamlined trading tools while evolving alongside their needs,” said
Anthony Denier, Group President and US CEO of Webull. “Offering prediction
markets is a key step in fulfilling that commitment.”
The initial
phase of the partnership will introduce short-term cash-settled event
contracts, with plans to expand into a broader range of economic events. Webull
also intends to become a clearing member of Kalshi, deepening the integration
between the two platforms.
The move
comes as traditional
brokerages seek to diversify their offerings amid increasing retail investor
interest in alternative investment vehicles. Prediction markets have
emerged as one of the fastest-growing asset classes in the United States,
allowing traders to take positions on specific event outcomes.
“Event
contracts are the next evolution of financial markets,” noted Tarek
Mansour, Co-Founder and CEO of Kalshi. “We are excited to partner with
Webull to bring this next generation investment opportunity to traders.”
The
partnership will include educational initiatives designed to help retail
investors understand and navigate the new offering effectively. The official
rollout is expected to commence in the coming weeks, pending final
implementation details.
Crypto.com and Robinhood
Under Scrutiny for Partnership with Kalshi
Although the
CFTC regulates Kalshi, some of its listed contracts, particularly those tied to
sports events, have raised concerns with the commission.
Last week, Finance
Magnates reported that the CFTC had launched an investigation into Super
Bowl-related event contracts offered by Crypto.com and Kalshi. The inquiry
focuses on whether these contracts comply with derivatives regulations, as the
market for sports-based trading products continues to expand.
The primary
issue under review is whether these event contracts qualify as gambling under
existing regulatory frameworks. The CFTC is assessing their compliance with
derivatives rules and examining potential risks of market manipulation.
“We are continuing to review the contracts in accordance with our regulations,” a CFTC spokesman stated, noting that the agency plans to hold public roundtables on emerging issues in derivatives markets, including event contracts.
@WebullGlobal x @Kalshi 🤝 https://t.co/246L4t2TRG
— Webull (@WebullGlobal) February 12, 2025
On Sunday,
Robinhood, a major retail trading platform, introduced the same event contracts
in partnership with Kalshi. This move has drawn attention, raising questions
about whether Robinhood might soon face regulatory scrutiny as well.
The CFTC
responded swiftly. By Wednesday, February 5, 2025, Robinhood suspended the
offering of Super Bowl event contracts just a day after listing them, following
the regulator’s request.
“While we continue to work with the CFTC to understand their concerns, we are suspending the rollout of the Pro Football Championship market,” Robinhood noted in its official announcement. “We are disappointed by this outcome, especially given that we had been in regular communication with the CFTC about our intent and plans to offer this product.”
Robinhood
serves approximately 24.3 million customers worldwide, but according to the
company, the Super Bowl event contracts were initially made available to only
1% of its user base. Traders who had already placed orders were given the
option to either close their positions or settle them.
This article was written by Damian Chmiel at www.financemagnates.com.
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