Phemex adds prediction markets through Polymarket integration

Crypto exchange Phemex has launched a prediction market underpinned by Polymarket, allowing users to trade on real-world event outcomes directly from their accounts using USDT.

The product lets users take YES or NO positions on outcomes ranging from crypto milestones to sports and global events, without requiring external wallets or separate onchain interaction.

Phemex said the feature is designed to let users express views on event outcomes rather than asset prices, expanding beyond traditional spot and derivatives trading.

The rollout includes a four-week competition running from April 23 to May 20, where users are ranked based on forecasting performance and receive weekly rewards.

Example of Polymarket prediction odds.

The move comes after Phemex launched an AI trading bot in February as part of its push to integrate artificial intelligence across its platform.

Phemex is a global cryptocurrency exchange founded in 2019 by former Morgan Stanley executives. It ranks 38th by trading volume, according to CoinGecko data. It offers spot and derivatives trading and serves more than 10 million users worldwide, according to the company.

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Prediction markets draw adoption and scrutiny in the US

Prediction markets are being integrated across a range of platforms, from crypto exchanges to media and live sports.

In November, TKO Group Holdings teamed with Polymarket to integrate prediction market data into Ultimate Fighting Championship events and broadcasts under a multi-year agreement.

The following month, CNBC announced a tie-up with Kalshi to incorporate real-time prediction market data into its TV, digital and subscription coverage.

More recently, Binance rolled out prediction market functionality in its wallet app through integrations with third-party platforms such as Predict.fun, allowing users to trade probability-based markets without paying transaction fees.

At the same time, prediction markets are facing increasing scrutiny in the United States, particularly over insider trading concerns.

In January, a Polymarket trader made around $400,000 betting on Nicolás Maduro being removed from office, with positions opened hours before US forces captured him. Separate reports also found six traders made about $1 million betting on the timing of US strikes on Iran, raising questions about the use of nonpublic information.

Lawmakers have responded to the activity. In March, at least 42 Democratic lawmakers urged the Commodity Futures Trading Commission and the Office of Government Ethics to warn federal employees against using insider knowledge to trade on prediction markets.

Regulatory pressure appears to be extending to platform oversight. In April, Polymarket removed a market tied to a missing US service member after backlash from lawmakers, saying it violated its integrity standards.

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