Kalshi, a financial exchange for prediction markets, has partnered with The Weather Company to use enterprise-grade weather data for verifying outcomes in weather-related trades. The collaboration integrates The Weather Company’s meteorological data feeds into Kalshi’s settlement process while incorporating real-time probability data from Kalshi into The Weather Channel app and weather.com, creating a two-way information flow for traders and consumers.
- Weather Market Volume Growth: 500% year-over-year expansion with $1.1 billion annualized volume
- Market Scope: Temperature, precipitation, and other measurable conditions across multiple locations
- Consumer Impact: 89% of U.S. adults report weather influences daily planning decisions
- Use Cases: Ice cream shops hedging cool summers; logistics firms managing precipitation risk
The partnership addresses growing demand for weather risk management tools as climate volatility increases. Businesses are increasingly turning to prediction markets to hedge against weather-dependent outcomes, while Kalshi’s weather and climate vertical has emerged as one of the exchange’s fastest-growing categories. The Weather Company will provide meteorologically validated observation data with documented methodology for each market type, while Kalshi retains responsibility for contract design, exchange operations, and market resolution under its regulatory framework.
When weather data is used to verify outcomes in real time, accuracy and trust matter. Our priority is ensuring Kalshi’s settlements rest on objective, scientifically validated atmospheric data. Every value we deliver carries a documented method reviewed by our meteorologists and held to the same standard, whether it comes from one official station or is derived from several observation sources.
Dr. James Belanger, vice president of meteorology at The Weather Company, emphasized the importance of scientific rigor in market settlement. Beyond current weather markets, the companies plan to explore new contract categories spanning climate, sports, and cultural events. The partnership reflects a broader shift toward prediction markets as tools for quantifying and managing uncertainty across sectors dependent on atmospheric conditions.
Dr. James Belanger, Vice President of Meteorology at The Weather Company. Source: LinkedIn
