What happened
Underdog said on Wednesday it has integrated Zerohash to accept crypto deposits across its prediction markets product, per a statement carried by Crypto Briefing. The partnership gives Underdog users a direct path to fund event contract positions with stablecoins and major tokens, routed through Zerohash's licensed brokerage and custody stack. Zerohash, based in Chicago, holds money transmitter licenses across US states and a BitLicense in New York, and already powers crypto flows for Interactive Brokers, Stripe, and MoneyLion.
The company handles the on-ramp, custody, and conversion into the quote currency Underdog settles bets in, meaning the platform itself does not touch the crypto directly. Underdog did not disclose which tokens launch first or whether deposits will be capped during the rollout.
Why it matters
Prediction markets have spent 2026 pulling in flows that used to sit in perp DEXs and sports books, and the funding rail has been the choke point. Users holding USDC or ETH have had to off-ramp to a bank, wait a day, then wire into a regulated venue. That round trip kills the trade.
Plugging Zerohash in collapses it to minutes. The bigger read is structural. Regulated event contract venues are courting the same crypto-native wallets that Polymarket built its book on, and the ones that solve deposits first inherit the liquidity.
Underdog is picking a licensed processor rather than a self-custody integration, a signal it wants to stay inside the CFTC-regulated lane rather than chase the offshore model.
Market impact
No listed token moves off this directly. The read-through sits in stablecoin velocity and in the competitive map for event contract venues. Zerohash processes meaningful USDC and USDT volume for its fintech clients, and prediction market deposits are a new flow category on top of that.