Binance. US plans to enter the U.S. prediction market by seeking a DCM license, aiming to challenge Kalshi and Polymarket as event contract trading surges.
Binance.US Targets New Growth
Binance.US is preparing a major expansion into the rapidly growing prediction market industry as part of its broader strategy to rebuild its position in the United States. During a panel discussion at Rare Evo in Las Vegas, Chief Executive Officer Stephen Gregory confirmed that the exchange intends to apply for a Designated Contract Market (DCM) license next month.
Obtaining DCM status would allow Binance. US to legally offer retail investors access to futures, options, and event-based contracts under U.S. regulations. The move represents a significant shift from the exchange’s traditional focus on spot cryptocurrency trading and reflects its effort to diversify revenue sources following years of regulatory challenges.
The licensing application forms part of the company’s broader recovery plan, which combines lower trading fees, expanded derivatives offerings, and stronger compliance standards. Since Gregory assumed leadership earlier this year, Binance. US has focused on restoring customer confidence while modernizing its product lineup to compete more effectively in the U.S. digital asset market.
Recent initiatives include near-zero trading fees, planned derivatives products, and investments in regulatory infrastructure designed to support long-term growth.
Prediction Markets Gain Momentum
Prediction markets have emerged as one of the fastest-growing segments within financial technology, allowing traders to speculate on the outcomes of real-world events ranging from elections and economic data to sporting events.
Growing regulatory clarity has encouraged more financial firms to enter the sector, while rising institutional participation has accelerated market activity. If approved by the Commodity Futures Trading Commission (CFTC), Binance.US would compete directly with established operators including Kalshi and Polymarket.
The competitive landscape is becoming increasingly crowded:
- Coinbase has partnered with Kalshi to offer event contracts.
- Gemini recently secured regulatory approval for similar products.
- Robinhood is reportedly exploring an agreement with Crypto.com to expand prediction market offerings.
- Industry trading volume has exceeded 16 billion event contracts this year, up from more than 12 billion during 2025.
For Binance.US, entering this segment offers an opportunity to diversify beyond cryptocurrency trading while attracting new categories of retail investors interested in regulated financial products.
Rebuilding Market Position
The exchange’s latest expansion follows several difficult years after regulatory enforcement actions sharply reduced its U.S. trading activity. Beginning in 2023, volumes declined significantly following Binance Holdings’ legal settlement with U.S. authorities, which included approximately $4.3 billion in penalties. Former Binance CEO Changpeng Zhao also served a four-month prison sentence before later receiving a presidential pardon.
Despite those setbacks, Zhao remains the majority shareholder of Binance.US and has continued advocating for innovation while maintaining that his involvement is primarily technical.
Company executives believe expanding into prediction markets could strengthen Binance.US’s competitive position by creating new revenue streams beyond traditional crypto trading. The strategy also aligns with broader industry trends as exchanges increasingly combine digital assets, derivatives, and event contracts within a single regulated platform.
Competition, however, remains intense. Kalshi continues to dominate the U.S. prediction market, benefiting from exceptionally strong sports-related activity. During the recent World Cup, betting volume reportedly reached $27 billion, far exceeding the roughly $1 billion generated during the Super Bowl. Sports contracts now account for nearly 80% of customer order flow across major prediction market platforms, highlighting both the scale of demand and the opportunity Binance.US hopes to capture.
Should regulators approve its DCM application, Binance.US would enter one of financial technology’s fastest-expanding markets, positioning itself to compete for a larger share of the evolving U.S. trading landscape.