* Bitnomial is preparing to launch prediction markets after obtaining approval.
* Prediction markets are gaining popularity in the cryptocurrency industry.
Bitnomial received approval from the Commodity Futures Trading Commission (CFTC) to launch prediction markets in the United States. This step demonstrates the growing popularity of prediction markets this year. Bitnomial's recent approval came after it received the green light to launch a US-based instant cryptocurrency trading platform regulated by the CFTC.
Bitnomial Clearinghouse LLC, which operates solely as an infrastructure clearing provider, announced that the Commodity Futures Trading Commission (CFTC) granted it approval for fully collateralized swaps clearing.
Thus, with this approval now in effect, Bitnomial, the parent company operating as a regulated digital asset derivatives exchange in the US, was allowed to begin offering clearing services for other platforms and to start running prediction markets.
Bitnomial indicated in a recently released report that its prediction market will primarily focus on the cryptocurrency industry and economic events. This complements its existing offerings of Bitcoin (BTC) derivatives and cryptocurrency products. The contracts will give traders the opportunity to bet on outcomes such as macroeconomic data and token price levels.
1. Bitnomial is preparing to launch prediction markets after obtaining approval.
Following Bitnomial's recent approval, sources familiar with the situation stated that the CFTC's decision will significantly diversify the range of trading products that Bitnomial offers. Currently, the Chicago-based company offers perpetuals, futures, options contracts, and leveraged spot trading across its exchange and clearinghouse divisions.
Furthermore, its clearinghouse supports margin and settlement based on cryptocurrencies, allowing approved products the opportunity to obtain margin and settlement directly using digital assets.
Following these findings, the cryptocurrency community expressed excitement about Bitnomial's approval. This action prompted Bitnomial's CEO, Michael Dunn, to comment on the matter. Dunn highlighted that this approval represents a recent achievement, also explaining that it enables the company to support both its exchange and external partners. He stated that this move establishes a clearing network that enhances the overall ecosystem of prediction markets.
Regarding reports that Bitnomial Clearinghouse is operating solely as an infrastructure clearing provider, sources clarified that the company decided to take on this role instead of competing with retail firms.
This strategy gives partners the green light to access their margin and settlement systems. The decision paves the way for collateral to be switched between US dollars and cryptocurrencies.
In the meantime, analysts discovered that Bitnomial's recent approval came after getting the green light to launch a US-based instant cryptocurrency trading platform regulated by the CFTC. The platform enables customers to effectively buy, sell, and trade leveraged and non-leveraged cryptocurrency products on a federally regulated exchange.
2. Prediction markets are gaining popularity in the cryptocurrency industry.
The recent CFTC decision regarding Bitnomial's request to launch prediction markets in the United States demonstrates the growing popularity of prediction markets this year.
To support this claim, DefiLlama shared data showing that the prediction market Kalshi successfully achieved $5.27 billion in trading volume last month. On the other hand, the blockchain-based Polymarket recently achieved $2 billion in the same timeframe.
This achievement came after Polymarket obtained approval from the CFTC in November to operate an intermediary trading platform. This allowed its users to access it through registered brokers due to US market regulations.
Approval was secured after the CFTC and the US Department of Justice halted an investigation in July. In this investigation, they examined whether Polymarket allowed its users residing in the US to trade. The investigation included an FBI search of the founder Shayne Coplan's home.
In the meantime, sources reported that Polymarket is winding down contracts using the stablecoin USDC on the Polygon blockchain. It has also recently reported forming partnerships, including its collaboration with UFC and Zuffa Boxing, as well as the fantasy sports operator PrizePicks, in November.
