Key facts
- Blockchain.com seeks licenses to operate a regulated futures exchange and a derivatives broker.
- Binance US aims to rebuild market share after regulatory setbacks.
- Both companies are diversifying revenue streams amid a crypto downturn.
- Blockchain.com is also preparing for a $4B-$6B IPO.
- Binance US is seeking up to $100 million in funding at a $1 billion valuation.
Binance US and Blockchain.com are seeking approval from the Commodity Futures Trading Commission (CFTC) to offer regulated prediction markets and related derivatives to US customers. This move represents an expansion beyond traditional crypto assets for these companies.
Blockchain.com has applied for licenses to operate as a Designated Contract Market (DCM) and a Futures Commission Merchant (FCM). This would allow the firm to list event contracts on real-world outcomes like sports and politics, in addition to crypto derivatives. The company already partners with Polymarket for prediction markets and offers perpetual futures to international users. Blockchain.com is also preparing for an IPO, having confidentially filed with the SEC and targeting a valuation of $4 billion to $6 billion.
Binance US, operated by BAM Trading Services, is also entering the prediction market race as part of an effort to regain market share after facing regulatory challenges. CEO Stephen Gregory confirmed plans to apply for a CFTC DCM license. Both companies are diversifying revenue streams amid a prolonged crypto downturn, with trading volumes on Kalshi and Polymarket surging significantly. Binance US is also seeking up to $100 million in funding at around a $1 billion valuation to support its expansion plans.