Prospect Markets Enters the Prediction Markets Race on…

Prospect Markets disclosed on 1 September that it has signed a definitive agreement with Crypto.com's US derivatives business to roll out regulated sports prediction contracts ahead of the NFL and NBA seasons. The arrangement lets Prospect reach the market through Crypto.com's existing regulatory and clearing infrastructure rather than building an exchange of its own.

Under the deal, Prospect Brokerage USA LLC will distribute event contracts offered by Crypto.com's Derivatives North America (CDNA), which is registered with the Commodity Futures Trading Commission as a designated contract market and derivatives clearing organisation. Foris DAX FCM LLC, which trades as OG Broker, acts as the futures commission merchant, while Prospect operates as a registered introducing broker. The initial focus is sports-based event contracts — a segment that accounted for roughly 85% of prediction market trading volume on the sector's largest platform in June 2026.

“Executing a definitive agreement with Crypto.com is a company-defining milestone,” said Johnny Chen, Prospect's founder and chief executive. He added that the agreement clears the way for the company to launch, onboard users and generate revenue.

A fast-growing market with unresolved rules

Prediction market volume has expanded sharply. Trading rose from about $51 billion in 2025 to a Bernstein projection of $240 billion in 2026, a 370% increase, while combined monthly notional volume climbed from under $5 billion in September 2025 to more than $50 billion in June 2026. During the 2026 FIFA World Cup, prediction markets captured an estimated 27% of US sports-betting volume, up from 9% at the start of the year.

Steve Humenik, chief legal officer at OG and executive vice president and global head of legal for prediction and capital markets at Crypto.com, called the definitive agreement a major step in widening access to fully regulated, event-based prediction markets across the United States.

Prospect enters a field where Polymarket, Kalshi, Robinhood, Coinbase and Gemini already operate or have announced prediction offerings. Its distinguishing feature is that it distributes contracts through CFTC-registered infrastructure rather than running a standalone venue, a capital-light approach that avoids the regulatory and engineering costs of a proprietary exchange. Even so, sports-based event contracts remain caught in federal-state disputes over jurisdiction, and pending litigation will shape whether the current structure survives.

Prospect Markets trades on the TSX Venture Exchange under the ticker MKT and on the US OTCQB as MKTSF. The companies target a Q3 2026 launch, subject to remaining regulatory approvals, with the NFL regular season starting on 9 September. No live product exists yet, and user onboarding, product availability and state-level compliance remain outstanding.