Blockchain.com Latest Big Crypto Name to Try Hand in U.S. Prediction Markets

Blockchain.com is the latest big name from the world of cryptocurrency brokerage houses looking to try its hand in the U.S. prediction market industry.

The Dallas-based company announced today it has filed applications for Futures Commission Merchant (FCM) and Designated Contract Market (DCM) licenses with the Commodity Futures Trading Commission (CFTC) — the federal regulator overseeing yes/no exchanges operating in this country.

FCM permits, which are obtained through the National Futures Association (NFA), are essential for exchange operators because those licenses allow holders to process derivatives-based trades and custody client funds.

Registered with the CFTC, DCMs are open to both institutional and retail traders and are eligible to clear trades involving futures, options and swaps, meaning DCMs can operate as prediction markets. The CFTC classifies event contracts as swaps.

Blockchain.com Could Be Credible Prediction Market Player

In addition to its prediction market push, Blockchain.com is also applying to offer cryptocurrency derivatives to its US-based customers. The company has experience with perpetual futures, also known as “perps,” and event contracts because it’s already offering those trades to international clients.

Other data points indicate that, over time, Blockchain.com could become a legitimate entrant in the U.S. prediction market space — an arena that to date has largely been dominated by a single company.

Doing business in more than 70 countries, Blockchain.com says it has cleared “more than $1.1 trillion in crypto transactions” and that it has over 95 million wallets across more than 44 million confirmed accounts.

Crypto, Prediction Markets Continue Intersecting

The prediction market industry is still young, but in a short amount of time, it’s already become clear that cryptocurrency and yes/no exchanges are intersecting.

On the customer-facing front, Blockchain.com is the latest crypto broker to signal interest in event contracts. If the CFTC approves the company’s DCM and FCM applications, the firm would join Coinbase Global (NASDAQ: COIN), Crypto.com, Gemini Space Station (NASDAQ: GEMI) and Robinhood Markets (NASDAQ: HOOD), among others, as the brokers with significant digital currency footprints also offering event contracts.

Privately held, Blockchain.com is reportedly working on a $500 million initial public offering (IPO) that could value the company at $4 billion to $6 billion.