Kalshi is expanding its business from prediction markets to crypto derivatives. The company says it plans to launch perpetual futures, with the first products being crypto perpetual contracts, aiming to provide U.S. traders with a regulated, domestic alternative.

Targeting the offshore platform-dominated market

Perpetual contracts are futures products without a fixed expiration date, eliminating the need for traders to repeatedly roll over their positions between different expiration months. The product price continuously tracks the underlying asset, typically maintaining proximity to the spot market through funding rate mechanisms.

Kalshi stated that the annual trading volume of offshore crypto perpetual contracts has increased from $28 trillion in 2023 to over $90 trillion in 2025. Historically, this market has been dominated by offshore platforms, with US institutions often only able to participate indirectly or access related products through overseas channels.

Can be used to hedge Bitcoin exposure

For participants such as payment companies and asset management institutions with Bitcoin exposure, perpetual contracts can be used to hedge against short-term price fluctuations. For example, a company expecting to receive Bitcoin next week can hedge against the risk of its asset declining before it is credited or redeemed by shorting a BTC perpetual contract.

For directional traders, these products can also be used for bullish or bearish bets without having to select an expiration date first. Kalshi stated that funding rates will be charged every 8 hours and will be publicly displayed in the trading log.

The product is still pending CFTC approval.

Kalshi stated that these perpetual futures contracts still require regulatory approval and will be subject to oversight by the U.S. Commodity Futures Trading Commission (CFTC) in the future. The company emphasizes "compliance" as a key differentiator from offshore platforms, and also noted that perpetual contracts for agricultural commodities are not included in the initial product lineup.

Besides Kalshi, Polymarket is also developing its own perpetual contract product, attempting to enter the 24-hour, two-way trading market. These platforms are expanding from event contracts such as elections, sports, and macroeconomic data to a product line closer to mainstream crypto derivatives.

Additional information:The article revealed that CNBC has a business relationship with Kalshi and that CNBC holds a minority stake in Kalshi.