Wealthsimple and ProphetX have announced separate prediction market launches in North America, highlighting the continued expansion of event-based trading products across regulated financial markets in Canada and the United States.
The two launches come at a time when prediction markets are attracting increasing attention from regulators, policymakers and traditional gambling stakeholders.
Operators have argued that event contracts fall within derivatives law when offered through regulated exchanges, while critics in several jurisdictions have questioned whether some products resemble gambling activity.
In Canada, Wealthsimple is preparing to launch Wealthsimple Predict this summer. The standalone application, currently in beta testing, will provide access to nearly 4,000 contracts listed on Kalshi, the US-based prediction market exchange.
The offering will initially focus on economic indicators, financial markets and climate-related events, the categories approved by the Canadian Investment Regulatory Organization (CIRO).
The launch follows CIRO authorization granted to Wealthsimple in March, making it the second Canadian investment dealer approved to offer event and forecast contract trading.
Under the approval, contracts must have settlement periods of at least 30 days and fall within specific categories regulated as derivatives rather than gambling products.
Wealthsimple Co-Founder and Chief Product Officer, Brett Huneycutt, said: "Until now, Canadians have had limited access."
The Canadian launch reflects a broader trend of retail brokerage firms exploring prediction markets as an extension of investment and trading products.
Wealthsimple, which serves more than four million Canadians, has expanded beyond investing into banking, tax and payments services in recent years as it seeks to build a wider financial platform.
Meanwhile, ProphetX has officially launched its platform nationwide in the United States after securing approval from the Commodity Futures Trading Commission (CFTC) as both a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO).
The approvals allow ProphetX to operate a vertically integrated exchange where users can trade, clear and settle sports event contracts under federal oversight.
The company positions its platform as a peer-to-peer exchange rather than a traditional sportsbook, with users trading directly against one another and prices determined by market activity.
The launch arrives during a period of heightened legal debate surrounding sports event contracts. Several states have challenged prediction market operators, arguing that sports-based contracts should be regulated under state gambling laws.
At the same time, proponents point to federal court rulings and CFTC oversight as evidence that such products fall within existing derivatives frameworks.
ProphetX CEO and Co-Founder, Dean Sisun, said the platform offers a market where "the market sets the price, not the house."
The nationwide rollout also coincides with increased consumer interest in event-based trading products, driven by major sporting events such as the FIFA World Cup and growing participation in prediction markets across financial and economic categories.
In May, ProphetX strengthened its regulatory and legal leadership team by appointing Bruce Fekrat as CLO and Gabriel Wong as Chief Compliance and Risk Officer while pursuing CFTC approval as both a DCM and DCO. The appointments came amid ongoing disputes between federal regulators and several states over the classification of sports event contracts.
Wealthsimple's initial offering excludes sports, political and entertainment contracts, focusing only on categories approved under its Canadian regulatory authorization
