cites<\/a> corporate earnings, snowfall levels, economic indicators and hurricane damage as examples of outcomes that can underpin these contracts.<\/p>\nThat structure can allow a business to take a position that may offset losses caused by an external event. For example, a company exposed to high energy costs could use a contract tied to future energy prices. A weather-dependent business could consider a contract linked to snowfall, temperature, or storm activity.<\/p>\n
Blanket aims to make that process more accessible by using AI to connect a company\u2019s stated risks with relevant markets. Small firms may lack the dedicated risk teams employed by larger corporations, making it harder to identify suitable hedging instruments.<\/p>\n
However, an event contract does not provide the same coverage as an insurance policy. Its payout depends on the contract\u2019s specific terms, while the recommended position may not fully match the business\u2019s actual financial loss. AI-generated recommendations also require human review.<\/p>\n
Kalshi pushes further into institutional risk management<\/h2>\n
Kalshi operates as a CFTC-designated contract market, a status it received in November 2020. Its role in Blanket gives the independent tool access to contracts traded through a federally regulated U.S. venue.<\/p>\n
The development follows Kalshi\u2019s move to expand beyond retail prediction trading. As crypto.news reported on Aug. 4, the platform partnered with compliance technology provider Comply to help financial firms monitor employee activity involving event contracts.<\/p>\n
The planned integration will place Kalshi trades within workplace surveillance systems already used to track stocks, bonds and cryptocurrencies. Employers will be able to identify restricted positions or activity that may involve material non-public information.<\/p>\n
Kalshi also expects the compliance system to cover its planned perpetual futures products when they become available.<\/p>\n
Market oversight remains a key issue<\/h2>\n
The focus on surveillance follows enforcement cases involving the misuse of prediction markets. Crypto.news reported that former U.S. Representative George Santos agreed to return $17,569.98 in gains, pay a $17,500 civil penalty and accept a three-year trading ban in a CFTC settlement involving Kalshi contracts.<\/p>\n
Kalshi had referred Santos\u2019 activity to regulators after he traded on whether he would attend President Donald Trump\u2019s State of the Union address while making public statements related to the outcome. Santos neither admitted nor denied the CFTC\u2019s findings.<\/p>\n
Blanket\u2019s launch points to another potential use for prediction markets: commercial risk management. Its adoption will depend on whether its recommendations closely match the financial exposures of small businesses and whether users understand the limits of event-contract hedges.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Blanket, an independently developed AI tool, is using Kalshi\u2019s regulated event-contract markets to help small businesses identify and hedge operational risks. Summary Blanket analyzes business risks tied to weather, energy…<\/p>\n","protected":false},"author":1,"featured_media":15232,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-36714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/36714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=36714"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/36714\/revisions"}],"predecessor-version":[{"id":36715,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/36714\/revisions\/36715"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/15232"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=36714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=36714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=36714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}