Kalshi is expanding its event-based trading business into commodities as prediction platforms invest more heavily in pricing infrastructure for contract settlement. The new hub covers assets including oil, gold and agricultural products, widening Kalshi’s reach as scrutiny of the sector intensifies in the U.S.
Highlights
- Pyth Network will provide real-time pricing data for Kalshi’s commodities hub launched in April, determining settlement of contracts tied to gold, silver, oil, and agricultural products.
- Pyth expands its reach by also supplying price feeds to Polymarket, positioning itself as a key data source across competing prediction and derivatives platforms.
- Kalshi’s commodities expansion proceeds amid regulatory disputes, with the CFTC and U.S. DOJ backing federal jurisdiction as state regulators challenge prediction contracts as unlicensed gambling.
Commodities rollout and settlement infrastructure
As reported by Cointelegraph, Kalshi says Pyth Network will provide real-time pricing data for its commodities hub, which debuted in April, with those feeds used to determine the settlement of event contracts tied to commodity prices.
The arrangement positions Pyth as the resolution data source for contracts linked to assets such as gold, silver, oil, copper and key agricultural products. In prediction markets built around real-world benchmarks, reliable and tamper-resistant price feeds are central to fair contract outcomes and transparent trading conditions.
Pyth, a decentralized oracle network, delivers real-time market data to blockchain applications. The company has also been selected by rival platform Polymarket to provide price feeds for equities and commodities, extending its role across competing prediction market venues.
Regulatory pressure shapes sector growth
Kalshi is rolling out the commodities expansion while seeking to add more structure to the fast-growing prediction market industry. The company is regulated by the U.S. Commodity Futures Trading Commission as a designated contract market, allowing it to offer derivatives trading under federal oversight similar to a traditional exchange.
At the same time, state regulators are challenging Kalshi and other prediction platforms, arguing that some contracts resemble unlicensed gambling or fall outside current derivatives rules. The U.S. Department of Justice and the CFTC recently ask a federal court to block Arizona from enforcing state gambling laws against Kalshi’s contracts, signaling support for federal jurisdiction in the dispute.
The clash comes as prediction market activity grows sharply over the past two years, attracting new participants from traditional finance and the crypto sector. That broader expansion is increasing demand for dependable market data systems as platforms move into more complex asset classes.
In our earlier article, we covered New York’s lawsuits against Coinbase and Gemini over prediction-market contracts tied to sports, entertainment and elections, with the state alleging the products amount to unlicensed gambling. We also noted the widening state-by-state clash over whether such contracts fall under CFTC authority or state gambling laws, alongside ongoing court fights involving platforms like Kalshi seeking federal protection from state enforcement.
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