Crypto exchanges are accelerating their expansion into prediction markets as falling digital asset prices and declining trading volumes push platforms to diversify their revenue streams, according to a report by the Financial Times.

Blockchain.com last week applied for a US licence to offer regulated prediction markets, while Binance US has also recently sought regulatory approval, joining Coinbase, Crypto.com and Gemini in targeting the rapidly growing sector.

Prediction markets allow traders to speculate on outcomes ranging from elections and sporting events to interest rate decisions and economic developments. Crypto platforms are developing their own offerings or partnering with established operators Polymarket and…