Blockchain.com has applied for two licenses from the U.S. Commodity Futures Trading Commission (CFTC) to offer prediction markets and cryptocurrency derivatives to retail and institutional customers in the United States, the company told CNBC on October 9.
The applications would allow the digital asset platform to pursue regulated U.S. trading services as crypto exchanges expand into event contracts and derivatives. Blockchain.com already offers prediction markets through Polymarket and perpetual futures powered by Hyperliquid to selected international customers.
Two Applications Target U.S. Expansion
Blockchain.com has applied for designated contract market (DCM) status, which would allow it to operate a regulated futures exchange, and registration as a futures commission merchant (FCM), which would permit it to provide brokerage services for derivatives contracts. CEO and co-founder Peter Smith said the applications would support the company's plans to combine digital asset management with trading and event-based contracts. "Users should be able to manage their digital assets, trade derivatives, and take positions on real-world events easily, without jumping between different apps," Smith told CNBC in a statement.The company began offering prediction markets through its partnership with Polymarket earlier this year. In April, it also launched perpetual futures trading through its self-custodial DeFi wallet, using Hyperliquid infrastructure. Blockchain.com joins a growing list of crypto companies seeking regulated access to event-based trading. Binance.US announced plans to apply for DCM status in July, while Crypto.com and Gemini operate their own prediction market platforms. Coinbase offers event contracts through its partnership with Kalshi.“Our DCM and FCM applications build toward that future in the U.S. through the appropriate regulatory frameworks.”
Investor Takeaway
Blockchain.com has applied for CFTC approval to operate a regulated derivatives exchange and provide brokerage services, paving the way to offer prediction markets and cryptocurrency derivatives to U.S. retail and institutional customers.
Regulatory Competition Intensifies
Blockchain.com's applications arrive as the CFTC considers how to oversee prediction markets and the contracts listed on regulated exchanges. The regulator has been developing new rules for event contracts, including potential changes to exchange requirements and consumer protections. The sector also faces legal uncertainty over whether federal derivatives rules override state gambling laws for sports-related contracts. On October 8, the NFL backed New Jersey's request for the U.S. Supreme Court to review a dispute involving Kalshi, arguing that sports outcome contracts should fall under state gambling regulation rather than exclusive federal derivatives oversight.Blockchain.com's expansion plans coincide with preparations for a public listing. The company confidentially submitted a draft registration statement to the Securities and Exchange Commission (SEC) in May, and FinanceFeeds reported in September that it was targeting a $4 billion to $6 billion valuation and considering a U.S. IPO that could raise about $500 million.
The CFTC's decisions on Blockchain.com's applications will determine whether the platform can bring its proposed prediction market and derivatives services to U.S. customers under the requested regulatory framework.Investor Takeaway
Blockchain.com’s applications come as crypto platforms seek regulated access to prediction markets and derivatives, while the CFTC develops its oversight approach and legal disputes over sports contracts continue to challenge the industry.