Backpack Exchange Launches Margin-Based Prediction Market

Core Insights - Backpack Exchange has launched a private beta for a margin-based prediction market, allowing traders to place bets on digital assets and financial outcomes using the same capital across multiple products [1][2][3] Company Overview - Backpack Exchange was founded by former FTX employees and acquired FTX EU in January 2025, gaining access to a MiFID II-regulated framework and enabling the recovery of user funds frozen during the 2022 FTX collapse [5] - The platform rebranded FTX EU as Backpack EU in September 2025, aiming to offer regulated perpetual futures across Europe [5] Product Features - The Unified Prediction Portfolio allows prediction markets to operate alongside spot trading, perpetual futures, and lending within a single account, eliminating the need for traders to lock up funds in a single bet [2][3] - The platform employs cross-margining, enabling the same capital to support multiple positions simultaneously, which aims to reduce the opportunity cost of capital for traders [2][3][4] Market Context - The prediction market sector is experiencing growth, with platforms like Kalshi and Polymarket reporting billions in trading volume and increasing mainstream visibility [6] - Polymarket has recently partnered with Dow Jones and WSJ to share prediction market data, indicating a trend towards greater integration and visibility in the market [6] Strategic Positioning - Backpack Exchange's new offering positions it as a vertically integrated exchange, allowing traders to deploy capital efficiently across various products [7] - The introduction of a cross-margined prediction market could signify a shift in how crypto-based financial betting operates, providing traders with greater flexibility and control over their capital [7]