Underdog and Crypto.com/Derivatives North America (CDNA) have announced a partnership to bring federally regulated sports event contracts to U.S. customers through the Underdog application. This move marks a significant step in integrating prediction markets into mainstream sports trading, allowing users to speculate on outcomes of professional and college sports events, including the NFL, NBA, and MLB, with prices updating in real time based on market activity.
Regulatory Framework and Partnership Details
CDNA is a Commodity Futures Trading Commission (CFTC)-registered designated contract market and derivatives clearing organization, providing a compliant framework for offering financial products based on sports events. As part of Crypto.com, CDNA benefits from established infrastructure and a broad user base, aiming to evolve prediction markets and enable 24/7 trading access.
Underdog, which holds gaming licenses in multiple states, will integrate its existing responsible gaming protocols into the new offering. The company already operates fantasy sports and sports betting services within the same application, making it the only platform to combine fantasy sports, sports betting, and prediction markets in a single app.
Executive Perspectives
Underdog CEO Jeremy Levine described prediction markets as an 'exciting development' whose future is centered on sports. Crypto.com’s Travis McGhee stated that the partnership would expand access to CDNA’s offerings. 'We are thrilled to partner with Underdog to enhance the sports experience for customers nationwide with the ability to now trade using Underdog’s technology – all in one app,' McGhee remarked.
Underdog noted that the feature is available to users in jurisdictions where the company is licensed. This collaboration not only bridges the gap between traditional sports betting and financial derivatives but also sets a new standard for regulated prediction markets in the United States.
Market Implications
The launch of CFTC-regulated sports prediction contracts signals a growing convergence between crypto-native platforms and traditional sports markets. By leveraging CDNA’s regulatory status, Underdog can offer a legally compliant environment for users to trade on sports outcomes, potentially attracting a broader audience that previously relied on offshore or unregulated platforms. As the prediction market sector continues to evolve, partnerships like this could reshape how fans engage with sports events, combining entertainment with financial speculation in a regulated framework.