Inside the Prediction Markets: Building the Broker Stack

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Prediction markets are becoming part of everyday life. This week, brokers got another plug-and-play solution to launch event contracts, regulators dealt with insider trading, and a native prediction market platform hired an institutional executive from traditional finance. Less hype. More setup. The Tools Arrive The largest shift was on the B2B side. Prediction markets are now packaged, priced, and sold like other brokerage technologies. Leverate launched a white-label prediction markets platform for brokers. The turnkey solution requires no in-house development and lets firms add event contracts to their stack in days. The pitch to brokers is simple: add revenue. Leverate projects 15–25% more revenue from spreads, trading fees, and market creation, with attractive engagement metrics. They are not alone. Devexperts, creator of DXtrade, has launched its own infrastructure for CFD brokers and prop firms. Firms can deploy a standalone event-trading platform or integrate modular components into existing systems.This trend aligns with a new KPMG white paper that frames prediction markets as a strategic issue for brokers rather than just an experiment. The report says banks, brokers, and asset managers must decide to integrate event contracts into core platforms or keep them separate. That choice has structural implications. Firms could shift from structured-product margins to revenue from platform access, liquidity, and analytics tied to event-based markets. Institutions Plug In Institutional integration proceeds quietly. After partnering with Tradeweb Markets, Kalshi is expanding its reach into mainstream distribution. DriveWealth plans to add Kalshi event contracts to its API-first brokerage infrastructure, enabling retail traders to access them alongside stocks and ETFs. Kalshi hired Andy Ross, former head of prime brokerage at Standard Chartered and former CurveGlobal CEO, to lead its institutional business. Adding a derivatives veteran signals higher ambitions. As prediction markets resemble standard trading venues, they need more liquidity, infrastructure, and talent with institutional expertise. Volumes support this move. Kalshi processed about $23.8 billion in 2025 volume; the sector saw a record $702 million in daily trading this year. Growth is real.As of February 22, @Kalshi’s Monthly Notional Volume stands at approximately $8.1B, averaging around $370M per day. If this pace holds, @Kalshi is on track to close February with roughly $10.4B in Notional Volume. pic.twitter.com/vgTpFelQZz— KalshiData (@kalshidata) February 24, 2026Regulators Watch Closely The Commodity Futures Trading Commission issued an advisory reminding traders and exchanges that insider trading, fraud, wash trades, and manipulation remain under federal oversight. The reminder followed two KalshiEX cases: a political candidate traded contracts tied to his campaign, and a YouTube editor traded on contracts linked to a channel with privileged content knowledge.Today, we are releasing information about two insider cases we recently closed.Thank you @robertjdenault and team for leading the investigation and working with law enforcement. https://t.co/TcdmzeZw6P— Tarek Mansour (@mansourtarek_) February 25, 2026Both cases led to fines and suspensions. Kalshi enforced internal discipline, but the CFTC clarified that federal authorities retain full prosecutorial powers over registered exchanges. Regulatory questions remain on product classification. Some event contracts resemble binary options, which are banned in Europe since 2018 due to gambling concerns. For brokers, this distinction matters. Technology providers offer tools, but cannot remove jurisdictional risk. The regulatory environment is not hostile, but it is watchful. Bottom Line This week was about building, integrating, and regulating infrastructure. White-label platforms are ready for brokers. Institutional channels are opening. Regulators are reinforcing oversight. Advisory firms are framing event contracts as a strategic choice. Prediction markets are moving from idea to implementation. For brokers and fintechs, the least predictable outcome may be that they become standard infrastructure.This article was written by Tanya Chepkova at www.financemagnates.com.