Polymarket Seeks U.S. License to Offer Margin Trading, Chasing Rival Kalshi

The move places Polymarket in closer competition with Kalshi, which already holds a margin trading license. That approval, granted in March according to CoinDesk, has helped position Kalshi as a favored partner among institutional traders. BitKE reported that Kalshi's regulatory standing has given it an edge in serving that segment of the market.

Kalshi's early traction in leveraged products has been notable. The company recorded more than $5.5 billion in perpetuals trading volume within two weeks of the product's official launch, with contracts offered primarily on crypto tokens. Polymarket's application indicates an intent to compete for similar demand under a comparable regulatory framework.

Why It Matters Across Borders

For market participants operating between Africa, Europe, and the United States, the licensing race among prediction market platforms carries practical significance. Regulated access to leveraged event contracts shapes how cross-border traders and institutions can engage with U.S.-based venues, and compliance status increasingly determines which platforms institutional players are willing to use.

The outcome of Polymarket's FCM application remains pending, and the company has not, based on the available reporting, disclosed a timeline for a decision. Both firms are competing within an evolving regulatory environment for prediction markets and crypto-linked derivatives, where authorization to offer margin-based products has become a key differentiator.

As it stands, Kalshi holds the licensing advantage, while Polymarket's filing represents an effort to secure equivalent standing. How regulators respond will influence the competitive balance between the two operators and the broader shape of the regulated prediction market sector.