Key facts
- Kalshi filed to offer perpetual futures tied to individual US stocks.
- The proposed contracts would have no preset expiration date and use periodic funding payments to align prices with underlying stocks.
Prediction market Kalshi has filed with the SEC and CFTC to offer perpetual futures tied to individual US stocks, a product similar to those popular in crypto markets. The move follows a similar filing by Coinbase and indicates a growing trend to introduce crypto-style derivatives to traditional equity markets.
The introduction of single-stock perpetual futures could offer US traders new derivative products similar to those available in crypto markets, potentially increasing market participation and introducing new risk management tools for equities.
Kalshi has filed a proposal with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to offer perpetual futures contracts based on individual US stocks. This move places Kalshi alongside Coinbase, which submitted a similar proposal on the same day, in a bid to introduce crypto-style derivatives to the traditional equity markets.
The proposed contracts from Kalshi would feature no fixed expiration date and would utilize periodic funding payments between long and short positions to maintain alignment with the prices of the underlying stocks. Kalshi stated that these contracts would be classified as security futures products and would be cleared through its CFTC-registered clearinghouse, Kalshi Klear.
This development follows Kalshi's prior success in offering perpetual futures for cryptocurrencies such as Bitcoin, Ether, Solana, and XRP, after receiving CFTC approval for its Bitcoin perpetual contract in May. Payward, the parent company of the crypto exchange Kraken, has also filed a proposal through its Bitnomial Exchange to offer similar single-stock perpetual futures, with plans to initially list contracts for ten US equities including Tesla, Nvidia, Apple, Microsoft, and Amazon.
The filings occur shortly after the CLARITY Act failed to pass the Senate. Following the vote, SEC Chair Paul Atkins indicated that the agency would act decisively using its existing statutory authority to ensure regulatory certainty for investors and entrepreneurs.