Kalshi and The Weather Company Forge Partnership to Power Weather Prediction Markets

Kalshi, a regulated financial exchange, and The Weather Company, the data arm behind The Weather Channel, announced a strategic partnership to integrate enterprise-grade weather observations into Kalshi’s weather-related prediction markets. The exchange will rely on The Weather Company’s data feeds to verify market outcomes, while the weather-media brand will embed Kalshi’s real-time probability data into its app and website experiences.

GizmodoKalshi and The Weather Company announce partnership

Prediction markets allow traders to buy and sell contracts whose payouts depend on future events, and weather contracts have become a fast-growing segment. Kalshi reports that trading volume in its climate and weather vertical has risen 500 % year over year and is on track to generate roughly $1.1 billion in annualized volume. The partnership builds on prior collaborations, such as The Weather Channel’s inclusion of Kalshi probability data in articles about extreme temperature forecasts.

GizmodoKalshi and The Weather Company announce partnership

James Belanger, vice president of meteorology at The Weather Company, emphasized that the collaboration ensures settlements are based on “objective, scientifically validated atmospheric data” reviewed by professional meteorologists. Kalshi reiterated that it designs contracts, operates the exchange, and resolves markets under its regulatory framework.

Kalshi and The Weather Company announce partnership

• Volume growth: 500 % increase YoY in the climate and weather category.

Kalshi and The Weather Company announce partnership

• Projected annualized volume: Approximately $1.1 billion.

Kalshi and The Weather Company announce partnership

• Use cases: Ice-cream retailers hedging against cool summers; logistics firms managing precipitation-related delays.

Kalshi and The Weather Company announce partnership

By grounding market contracts in verified meteorological observations, the partnership aims to improve risk management for businesses and consumers facing increasingly disruptive weather events. The arrangement also addresses insider-trading concerns that have plagued prediction markets; lawmakers have introduced legislation to bar trades on outcomes that could be manipulated, reflecting regulatory scrutiny of emerging market categories.

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• “Because so much of the global economy hinges on atmospheric conditions, grounding these new categories in proven meteorological science allows both consumers and businesses to improve risk management around real-world weather in ways that simply weren’t possible before,” — The Weather Company’s Vice

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