Kalshi selects Pyth Network to settle commodities contracts

Kalshi selected Pyth Network to provide real-time price feeds that will determine settlement outcomes for event contracts on its newly launched commodities hub. The company announced the arrangement on Wednesday; the hub began operating in April.

The commodities hub offers event contracts tied to physical assets including gold, silver, oil, copper and major agricultural products. Payoffs on those contracts depend on whether specified market outcomes occur, so price data will be used to calculate final settlement values.

Kalshi said Pyth will supply the reference prices used to resolve contracts. The exchange-style platform lists and clears event contracts under federal oversight as a designated contract market regulated by the U.S. Commodity Futures Trading Commission.

Pyth Network is a decentralized oracle that aggregates price information from trading venues and publishes feeds that on-chain systems and other platforms can reference. The network has also built infrastructure to let institutions publish and monetize proprietary data across multiple networks.

A rival prediction market has also selected Pyth to provide price feeds for equities and commodities offerings, reflecting wider use of third-party oracles in event-based trading.

Kalshi operates under CFTC regulation, which grants it authority to list and clear derivatives-style event contracts. State regulators have argued some prediction market contracts resemble unlicensed gambling or fall outside existing derivatives rules. The U.S. Department of Justice and the CFTC asked a federal court to block Arizona from enforcing state gambling laws against Kalshi’s contracts, asserting federal jurisdiction over the exchange’s activities.

Platforms that tie contract outcomes to real-world financial benchmarks use external, auditable price feeds to calculate settlement values and to provide a verifiable record for resolving disputes. Kalshi has adopted externally verifiable price feeds for its commodity contracts and will rely on those feeds when determining final payouts.