Blockchain.com Applies for CFTC Licenses to Launch U.S. Prediction Markets and Derivatives Trading

Major cryptocurrency wallet and trading platform Blockchain.com is officially seeking regulatory approval to introduce prediction markets and cryptocurrency derivatives trading within the United States. According to recent reports, the company is aiming to capitalize on the rapidly expanding market for event-based contracts, signaling a significant strategic shift as it pursues broader compliance and deeper integration within the heavily regulated American financial ecosystem.

The move marks a notable expansion for the digital asset firm, which has submitted two critical applications to the Commodity Futures Trading Commission (CFTC). If successful, these regulatory approvals would empower the platform to extend its suite of advanced financial services to both retail and institutional customers across the United States, bridging the gap between traditional derivatives and emerging digital asset markets.

Key Applications Target Dual U.S. Regulatory Designations

To achieve its operational goals in the U.S., Blockchain.com has applied for two distinct licenses from the CFTC. The first application seeks designation as a designated contract market (DCM), a status that would authorize the company to operate a federally regulated futures exchange. The second application requests registration as a futures commission merchant (FCM), which would grant the firm the legal framework required to provide brokerage services directly for derivatives contracts.

These dual filings represent a comprehensive approach to U.S. market entry. By securing both DCM and FCM status, the company would control both the exchange infrastructure and the customer-facing brokerage operations, allowing for a streamlined user experience that mirrors the capabilities of traditional financial institutions operating within the derivatives sector.

The initiative builds upon international offerings that Blockchain.com rolled out earlier this year. The company currently provides prediction markets through a strategic partnership with Polymarket, alongside perpetual futures trading powered by Hyperliquid, though access to these products has been strictly limited to select international customer bases.

Peter Smith, the chief executive officer and co-founder of Blockchain.com, emphasized that the ultimate objective is to consolidate these diverse financial instruments into a single, cohesive platform. By doing so, the company hopes to eliminate the friction that currently forces users to navigate multiple standalone applications to manage different asset classes and financial strategies.

"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 stated in an interview. "Our DCM and FCM applications build toward that future in the U.S. through the appropriate regulatory frameworks."

A Broader Licensing Push and Competitive Landscape

Blockchain.com’s entry into the regulatory application pipeline places it among a rapidly growing cohort of digital asset firms seeking official federal sanction for event-based and derivatives trading. Data indicates that Blockchain.com is one of 12 companies that have applied for DCM licenses over the course of the year. Meanwhile, the CFTC has granted approval to six new exchanges, underscoring a broader institutional and regulatory thaw toward federally supervised prediction markets.

The surge in applications coincides with a period of intense commercial competition. Major industry players, including Coinbase and Crypto.com, have actively expanded their footprints into event-based trading. These corporate giants are increasingly challenging established prediction market operators such as Kalshi and Polymarket, creating a high-stakes competitive environment where regulatory compliance and speed-to-market are critical factors for success.

Despite the enthusiasm from the private sector, the regulatory landscape surrounding prediction markets remains fraught with complexity and uncertainty. The CFTC has consistently asserted federal jurisdiction and authority over event contracts, viewing them as a legitimate class of financial derivatives. However, state-level regulators have pushed back vigorously, arguing that certain types of event-based offerings—particularly those tied to sports and real-world competitions—infringe upon state gambling laws and consumer protection statutes. Conflicting court decisions in various jurisdictions have left this ongoing federal-state turf war largely unresolved, casting a shadow of regulatory ambiguity over the entire sector.

Preparing for a Potential Public Offering

The timing of Blockchain.com’s U.S. regulatory push also aligns with the company’s internal preparations for a potential initial public offering. Reports indicate that the firm filed confidentially for a public listing, targeting a valuation between $4 billion and $6 billion. While market watchers and financial analysts speculate on the trajectory of the offering, neither the company nor its leadership has announced a definitive timetable for the IPO, nor have they provided a specific launch date for the proposed U.S. prediction markets and derivatives platform as discussions with regulators continue.