A critical step toward the emergence of planets in a protoplanetary disk consists in accretion of planetesimals, bodies 1-1000 km in size, from smaller disk constituents. This process is poorly understood partly because we lack good observational constraints on the complex physical processes that contribute to planetesimal formation. In the outer solar system, the best place to look for clues is the Kuiper belt, where icy planetesimals survived to this day. Here we report evidence that Kuiper belt planetesimals formed by the streaming instability, a process in which aerodynamically concentrated clumps of pebbles gravitationally collapse into 100-km-class bodies. Gravitational collapse was previously suggested to explain the ubiquity of equal-size binaries in the Kuiper belt. We analyze new hydrodynamical simulations of the streaming instability to determine the model expectations for the spatial orientation of binary orbits. The predicted broad inclination distribution with 80% of prograde binary orbits matches the observations of trans-Neptunian binaries. The formation models which imply predominantly retrograde binary orbits can be ruled out. Given its applicability over a broad range of protoplanetary disk conditions, it is expected that the streaming instability seeded planetesimal formation also elsewhere in the solar system, and beyond.
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