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Kalshi partners with The Weather Company for weather hedge settlements

The partnership will use The Weather Company’s enterprise weather data to verify settlement while Kalshi’s real-time probabilities will be integrated into selected experiences on The Weather Company’s app and website.

Reported · Written up by our desk · Industry & Deals

Kalshi, the prediction market platform, has signed a strategic partnership with The Weather Company to support and expand weather hedging activity on its platform, using settlement data and cross integration, according to the announcement.

Kalshi said it will rely on The Weather Company’s enterprise grade weather data feeds as the trusted source for verifying weather hedge settlements. At the same time, The Weather Company will incorporate Kalshi’s real time probability data into select experiences on its flagship app and website, aimed at giving consumers additional ways to understand how markets price weather risk.

The Weather Company data is intended to provide authoritative observation information used to settle Kalshi weather markets, with consistent documented methodology by market type. Kalshi added that weather hedging is gaining importance as severe events become more disruptive, and it cited demand for weather related risk management tools.

Kalshi also pointed to large growth in its climate and weather vertical, saying total volume grew 500% year over year and is pacing toward $1.1 billion in annualised volume, as traders look to hedge weather risks or trade shifting climate trends. The platform said businesses use its weather and climate markets to manage impacts such as temperature and precipitation on operations.

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