Moomoo US Partners With Kalshi to Launch CFTC-Regulated Prediction Market

Moomoo US, the American arm of Chinese fintech giant Futu Holdings, has entered the prediction market space through a strategic partnership with Kalshi, the leading CFTC-regulated event contract exchange. The collaboration, first reported by CoinDesk, will allow Moomoo’s U.S. users to trade on the outcomes of major economic, political, and cultural events, including Federal Reserve interest rate decisions.

What the Partnership Offers

Through this integration, Moomoo’s retail investor base gains direct access to Kalshi’s event contract marketplace. These contracts are binary options that pay out based on the outcome of specific, verifiable events — such as whether the Fed will raise rates at its next meeting, or which party will win a particular election. All contracts listed on Kalshi are regulated by the Commodity Futures Trading Commission (CFTC), providing a legal framework that distinguishes them from unregulated prediction platforms.

Regulatory Milestone

Moomoo US received approval from U.S. authorities earlier this month to operate a prediction market, clearing the way for this launch. The approval signals growing regulatory acceptance of event contracts as a legitimate financial instrument, provided they operate within CFTC oversight. This marks a significant step for Futu’s expansion in the U.S., where it has primarily focused on stock and ETF trading for retail investors.

Why This Matters for Retail Traders

For Moomoo’s users, the addition of event contracts offers a new asset class that is directly tied to real-world outcomes. Unlike traditional options or futures, these contracts are simple to understand — a yes/no proposition on a clearly defined event. This could attract a broader audience of retail traders looking for straightforward ways to hedge against or speculate on macroeconomic events. The Fed rate contracts, in particular, provide a direct way to bet on monetary policy shifts without the complexity of interest rate futures.

Market Context and Competition

Kalshi has been the dominant player in the regulated prediction market space since its CFTC approval in 2020, but competition is heating up. The partnership with Moomoo gives Kalshi a significant distribution channel through one of the fastest-growing retail brokerages in the U.S. It also puts pressure on other platforms like Robinhood and Webull to consider similar offerings. Meanwhile, unregulated platforms like Polymarket continue to operate outside CFTC jurisdiction, highlighting the regulatory divide in the prediction market ecosystem.

Conclusion

The Moomoo-Kalshi partnership represents a notable convergence of traditional retail brokerage and regulated event contract trading. By combining Moomoo’s user base and trading infrastructure with Kalshi’s regulatory compliance and market-making expertise, the deal could accelerate mainstream adoption of prediction markets. However, the long-term success will depend on user demand, regulatory developments, and the ability to maintain trust in a space that has historically been associated with gambling. For now, the move positions both companies at the forefront of a rapidly evolving financial niche.

FAQs

Q1: What is a prediction market?
A prediction market is a platform where users trade contracts based on the outcome of future events. Each contract pays out if a specific event occurs, allowing traders to speculate on or hedge against real-world outcomes.

Q2: Are Kalshi’s event contracts legal?
Yes. Kalshi is regulated by the U.S. Commodity Futures Trading Commission (CFTC), making its event contracts legally compliant under U.S. derivatives law. This distinguishes them from unregulated prediction platforms.

Q3: Can I trade prediction markets on Moomoo now?
As of this announcement, the integration is rolling out. Moomoo US users will need to check their account for availability and may need to complete additional onboarding to access event contract trading.