Catenaa, Thursday, July 02, 2026-Crypto wallet provider Phantom has migrated its prediction markets infrastructure from a Kalshi-based system to World, marking a significant change in how users trade and settle event contracts on its platform.
The transition applies to all prediction market positions opened from June 1, while contracts created before that date will continue operating under the previous Kalshi infrastructure through DFlow.
The move comes as prediction market providers face growing regulatory scrutiny in several U.S. states, increasing competition among platforms offering decentralized alternatives.
Under the new framework, Phantom’s prediction markets operate on a noncustodial protocol that routes user orders to liquidity providers on the Solana blockchain.
Once an event concludes, payouts are redeemed automatically, eliminating the additional settlement transaction previously required under the Kalshi-based system.
The automated process is designed to simplify trading while allowing users to retain control of their digital assets throughout the transaction lifecycle.
Prediction market positions opened before June 1 will continue to rely on Kalshi data processed through DFlow.
Users holding those legacy contracts must manually exchange expired outcome tokens for the stablecoin originally used to fund their positions.
Phantom said final settlement values could vary depending on market pricing and settlement data available at the time of redemption.
The migration also changes how market outcomes are determined.
Legacy contracts continue using Kalshi-generated data, while new World-based markets may obtain settlement information from decentralized oracle providers, including Chainlink.
Phantom cautioned that delayed data feeds, inaccurate information or indexing failures could affect market resolution and, in some cases, result in financial losses for participants.
Phantom emphasized that it does not hold customer assets or act as the counterparty to trades.
Instead, transactions occur directly between market participants through decentralized infrastructure, with each prediction market governed by its own settlement rules.
The company also stated that the platform does not maintain a house edge, distinguishing its model from traditional betting operators.
Alongside the infrastructure upgrade, Phantom introduced updated trading policies designed to strengthen market integrity.
Users are prohibited from trading contracts if they possess material nonpublic information or have a direct conflict of interest regarding an event’s outcome.
The restrictions mirror safeguards commonly applied in regulated financial markets.
The migration reflects increasing competition among prediction market providers as the sector evolves beyond centralized trading models.
It also follows heightened legal scrutiny surrounding sports-related event contracts in the United States, where several platforms have faced challenges from state regulators despite operating under federal oversight.
By adopting decentralized infrastructure with automated settlement, Phantom is positioning its prediction markets for greater operational efficiency while reducing reliance on a single market operator.
Prediction markets allow users to trade contracts based on the outcome of future events, ranging from elections and economic data to sports and financial markets. Growing interest from the crypto industry has driven the development of decentralized prediction protocols that use blockchain networks, automated settlement and oracle services to determine event outcomes without centralized intermediaries. Competition has intensified as regulators continue examining the legal status of event contracts across multiple jurisdictions.
