The well-known brokerage company, Crypto.com, is the latest firm to dive deep into sports event trading. It has just launched a brand-new product that allows sports event trading, which lets users of the Crypto.com site and app to begin trading their predictions on the results of various sports events - including the Super Bowl.

Crypto.com, a leading cryptocurrency brokerage firm, has announced its entry into sports event trading with the launch of a groundbreaking new product. This new initiative allows users across the United States to trade predictions on the outcomes of sports events, including marquee games like the Super Bowl.

Kris Marszalek, the Chief Executive Officer and co-founder of Crypto.com, emphasized the innovation behind this offering, stating: "Sports Events Trading offers an entirely new platform for US users to engage nationwide at Crypto.com and in the Crypto.com app. This unique financial product allows users to trade their prediction on the outcome of a sports event. It's a fundamentally new concept for sports, and we're thrilled to be the first regulated platform in the US to offer it to our users."

A regulated first in sports event trading

This new product is offered through Crypto.com | Derivatives North America, a division regulated by the Commodities and Futures Trading Commission. According to the company, the product is the first of its kind in the US, providing a secure and regulated environment for users to participate in event trading.

Sports event trading, sometimes referred to as exchange betting, is not entirely new. Companies like Sporttrade have popularized the concept, which is based on implied probabilities rather than traditional odds set by sportsbooks. Contracts are priced between zero and 100, offering a straightforward and potentially more lucrative betting structure. For instance, if a team has a 50% implied probability of winning a game, a trader can purchase a contract for $50. As the event unfolds, the contract's value fluctuates, allowing traders to buy, sell, or hedge their positions based on real-time developments.

Crypto integration sets Crypto.com apart

Crypto.com distinguishes itself with its integration of cryptocurrency into the trading process. Customers can use any of the 350 cryptocurrencies available on the platform, including bitcoin, or convert them to US dollars to purchase event trading contracts.

Payouts on winning contracts will be made in dollars, ensuring accessibility for both cryptocurrency enthusiasts and those new to the space. This approach allows users to bridge the gap between the crypto world and mainstream event trading, offering a unique value proposition for users.

While some sportsbook operators have expressed interest in accepting wagers and issuing payouts in cryptocurrencies, regulatory hurdles have so far prevented widespread adoption. Crypto.com's ability to integrate digital currency within a regulated framework could set a precedent for other financial services firms.

Super Bowl trading and market potential

As the NFL playoffs approach, Crypto.com users can trade contracts on the 19 teams still in contention for the Super Bowl. Traders can buy 'yes' or 'no' contracts based on their predictions. For example, the Kansas City Chiefs and the Detroit Lions currently have an implied probability of 22% of winning the championship. As of this writing, a 'yes' contract on the Detroit Lions is priced at $22.25, and the Kansas City Chiefs' equivalent costs $21.75.

The event trading market is experiencing rapid growth, driven in part by interest in political wagering and the success of platforms like Sporttrade and Kalshi. Financial services firms are increasingly drawn to this space, recognizing the demand for diverse wagering options beyond traditional fixed-odds sports betting.

A new era for event trading

Crypto.com's move into sports event trading signals a transformative shift in how fans and traders engage with sports. By combining cryptocurrency functionality with a regulated trading platform, the company is pioneering a new way for users to participate in and profit from the outcomes of major events.

As the market continues to evolve, Crypto.com's innovative product could pave the way for other financial services firms to explore the untapped potential of event trading. For now, US users have access to an unprecedented opportunity to merge the excitement of sports with the dynamic world of trading.