Blockchain.com Latest Big Crypto Name to Try Hand in U.S. Prediction Markets

Blockchain.com is the latest big name from the world of cryptocurrency brokerage houses looking to try its hand in the U.S. prediction market industry.

The Dallas-based company announced today it has filed applications for Futures Commission Merchant (FCM) and Designated Contract Market (DCM) licenses with the Commodity Futures Trading Commission (CFTC) — the federal regulator overseeing yes/no exchanges operating in this country.

FCM permits, which are obtained through the National Futures Association (NFA), are essential for exchange operators because those licenses allow holders to process derivatives-based trades and custody client funds.

Registered with the CFTC, DCMs are open to both institutional and retail traders and are eligible to clear trades involving futures, options and swaps, meaning DCMs can operate as prediction markets. The CFTC classifies event contracts as swaps.

Blockchain.com Could Be Credible Prediction Market Player

In addition to its prediction market push, Blockchain.com is also applying to offer cryptocurrency derivatives to its US-based customers. The company has experience with perpetual futures, also known as “perps,” and event contracts because it’s already offering those trades to international clients.