Phantom, the popular Solana-based crypto wallet, released a prediction market disclosure on June 24 clarifying that since June 1, 2026, all new prediction market positions opened on the platform are backed by World Prediction Markets (World). This infrastructure upgrade replaces the previous settlement provider and aims to introduce a more professional, non-custodial solution for prediction market participants.
New Backend: World Prediction Markets
World is a non-custodial prediction market protocol operating on Solana, responsible for order routing and automatic settlement at expiry. When users initiate a prediction trade via Phantom's front-end interface, the order is executed by the World protocol, and settlement occurs automatically when the event expires. Phantom explicitly states that it serves only as the front-end interface and does not hold user funds, does not trade against users, and does not engage in market-making. This means user assets remain self-custodied at all times, interacting with World solely through smart contracts.
Non-Custodial Architecture and User Security
Phantom emphasized that the custody and settlement of its prediction market feature rely entirely on on-chain smart contracts. World's non-custodial design ensures that user funds are not stored in any centralized platform, reducing the risk of misappropriation or theft. For Phantom users, this allows participation in prediction markets without needing to transfer assets to a third party, while benefiting from Solana's low fees and high throughput.
Impact on the Ecosystem and Industry Significance
Phantom is one of the most widely used wallets in the Solana ecosystem, and the upgrade of its prediction market feature could attract more users to engage in on-chain prediction events. World, in turn, gains access to Phantom's large user base, boosting protocol adoption. This update reflects a broader industry trend: wallets are evolving from simple asset management tools to integrated DeFi front-ends, and prediction markets, as native crypto applications, are gradually receiving mainstream wallet support.