Sources: Kalshi plans to seek US regulatory approval to start offering single-stock perpetual futures; Coinbase filed similar regulatory paperwork last week

Single-stock perpetual futures may soon be available on a platform outside of traditional exchanges, changing how speculative bets on individual stock performance can be made.

Kalshi, a platform known for its prediction markets, is reportedly planning to seek U.S. regulatory approval to offer single-stock perpetual futures. This move follows a similar regulatory filing made by Coinbase last week for the same type of financial product. Perpetual futures, a high-risk trading instrument, have experienced a significant surge in popularity, driving Kalshi's consideration of expanding its offerings into this volatile market. The potential introduction of these products by both Kalshi and Coinbase could signify a growing interest from financial technology platforms in diversifying into complex derivatives.

The move by Kalshi and Coinbase to offer single-stock perpetual futures suggests a significant regulatory arbitrage or a perceived opening in the market for these complex, high-risk instruments. Both platforms are leveraging the growing popularity of perpetual futures, a derivative product that allows for continuous trading without an expiry date, but carries substantial risk due to leverage and potential for liquidation. This expansion could signal a broader trend of fintech companies pushing the boundaries of regulated financial products available to retail investors.

The U.S. Commodity Futures Trading Commission (CFTC) will be the key regulator to watch, as its approval is crucial for these offerings to launch. If approved, it could lead to increased competition and innovation in the derivatives market, potentially making these products more accessible. However, the inherent risks associated with perpetual futures, including the potential for significant losses for investors, will likely remain a point of scrutiny for regulators and market participants alike.