Kalshi disclosed that it has launched perpetual contracts linked to gold and silver, with the products receiving approval from the U.S. Commodity Futures Trading Commission (CFTC) this week. This marks Kalshi’s expansion of perpetual contracts into the precious metals market, following its earlier introduction of crypto perpetual contracts.
The first non-crypto perpetual contract has been approved.
Kalshi previously received approval in late May to launch perpetual contracts linked to crypto assets. The company stated that since launch, the cumulative notional trading volume of these contracts has reached $44 billion.
The gold and silver perpetual contracts, initially submitted in July and approved by the CFTC this week, officially launched on Thursday. According to Kalshi, this marks the first time in the U.S. that such perpetual contract products tied to non-crypto assets have been approved.
The platform continues to expand its contract offerings.
Perpetual contracts typically have no expiration date, and investors are not required to hold the underlying spot asset. The product price tracks the underlying asset's movement and remains aligned with the spot market through mechanisms such as funding rates.
Udesh Jha, Chief Risk Officer at Kalshi Klear, said the company chose precious metals as its next expansion focus due to high market interest in these commodities, particularly gold and silver, which have garnered increased attention in the context of inflation.
Traditional futures exchanges are facing competitive pressure.
After Kalshi launched perpetual contracts, the business model of traditional futures exchanges came under market scrutiny. Previously, the stock prices of Cboe and CME Group fell briefly as investors worried that the new contracts might disrupt existing businesses.
Among other things, CME once sued the CFTC in an attempt to block the approval of such perpetual contracts in the U.S., arguing that regulators should not allow these products in their current form.
Kalshi emphasized that early trading growth is tied to its status as a regulated platform. The company is also seeking to launch additional perpetual contract products, including U.S. stocks, industrial metal copper, and foreign exchange-related products.
Additional information: CNBC disclosed at the end of the article that it has a commercial relationship with Kalshi, including customer acquisition partnerships and a minority equity investment.