Wealthsimple to launch Kalshi-powered Predict app in Canada

Wealthsimple plans to launch Wealthsimple Predict, a standalone prediction markets app powered by Kalshi, in Canada this summer. The app will provide access to roughly 4,000 event contracts covering financial markets, economic indicators and climate.

The Canadian Investment Regulatory Organization (CIRO) authorized Wealthsimple in March to offer prediction market contracts. Under CIRO rules, the contracts will be regulated as derivatives and must have settlement periods of at least 30 days. Wealthsimple is the second investment dealer to receive CIRO approval to offer these products in Canada.

Wealthsimple Predict will operate separately from the company’s existing trading and investing services. Kalshi will supply the event contracts and pricing; Canadian users will be able to trade Kalshi-listed event contracts through Wealthsimple’s interface.

Kalshi has expanded its product set beyond classic prediction markets. At the end of May the company launched perpetual futures products, including crypto perpetual futures. Perpetual futures are derivatives that settle continuously and allow traders to take positions without holding the underlying asset.

Established derivatives exchanges have challenged recent regulatory approvals for crypto perpetual futures. CME Group filed a lawsuit against the U.S. Commodity Futures Trading Commission, arguing the regulator misapplied federal law in approving crypto perpetual futures tied to Kalshi and other firms. CME’s chief executive announced the exchange would contest the approvals in court.

Prediction markets have faced regulatory actions in multiple countries. Spanish authorities ordered internet providers to restrict access to some platforms while they investigate potential breaches of national gambling laws. Indonesia banned a prediction platform after trading in a contract tied to the early departure of the president. Authorities in Japan and South Korea have issued warnings or opened investigations related to activity on prediction platforms. At least 11 U.S. states have challenged prediction market activity under state gambling statutes.

A self-regulatory body has also referred Kalshi to state regulators over an advertising inquiry. Cody Carbone, chief executive of the Digital Chamber, predicted the dispute between federal derivatives regulators and state gambling authorities could ultimately reach the U.S. Supreme Court.

Wealthsimple’s Canadian rollout follows CIRO approval and comes as legal and regulatory actions involving prediction markets and new derivatives products continue in several jurisdictions.