Kalshi has integrated the Solana blockchain to launch tokenized versions of its event contracts on-chain. This strategic move is expected to significantly enhance liquidity across Kalshi’s markets and positions the platform to directly compete with Polymarket as both entities scale up U.S. market activity.
As prediction markets gain substantial interest in the U.S., Kalshi is leveraging the cryptocurrency community by offering on-chain versions of its contracts, according to company insiders.
Kalshi's Competitive Stance Against Polymarket
While Kalshi's traditional contracts operate through a regulated exchange requiring full identity verification, the newly launched tokenized alternatives offer distinct advantages. These include enhanced anonymity and speed, aiming to bring them on par with its crypto-native rival, Polymarket. Tokenization involves creating a digital representation of a real-world asset, effectively transforming event contracts into tokens that can be traded freely on the Solana blockchain.
The adoption of tokenized contracts allows Kalshi to operate at lower costs, provide global accessibility, and achieve better pricing efficiency. Because these versions run on-chain, they facilitate pseudo-anonymous trading via crypto wallets, bypassing Kalshi’s traditional identity-based accounts.
Kalshi already commands a substantial global user base and a regulated market presence. However, the company intends to aggressively attract crypto users who have invested billions of dollars into decentralized prediction markets like Polymarket. Trading volumes within the prediction market sector have surged, reaching nearly $2.3 billion in a single week during October.
To spearhead this expansion, Kalshi has established a dedicated on-chain ecosystem strategy and appointed John Wang, a recognized figure in the Web3 space, as its head of crypto. Wang highlighted the significant presence of "power users in crypto" and emphasized the goal of "enabling developers to build third-party front ends that utilize Kalshi’s liquidity." He also noted the potential for improved liquidity depth by attracting crypto-native traders, which would enable Kalshi to offer more accurate and competitive pricing across its markets.
In addition to competing with Polymarket, Kalshi faces a growing number of new entrants that have emerged in the U.S. market. This influx of alternative platforms began after the Commodity Futures Trading Commission cleared political markets and dropped its appeal following Kalshi’s court victory earlier in the year. Subsequently, the commission issued a no-action letter to QCX LLC and QC Clearing LLC, entities acquired by Polymarket. This move was widely interpreted as a signal of regulatory support among investors, adding further legitimacy to the prediction market space.
Kalshi's Strategic Partnerships in the Crypto Space
Kalshi's engagement with the Solana ecosystem began to take shape in May 2025, when the platform enabled SOL deposits through a partnership with Zero Hash. Since then, the two entities have collaborated on various initiatives, including the launch of a beta prediction market by Jupiter, a Solana-based decentralized exchange. Kalshi has also provided funding for developer grants through its ecosystem hub to foster third-party innovation around its liquidity.
For its stablecoin custody and payouts, Kalshi has partnered with Coinbase, which now holds the platform’s USDC reserves under institutional custody.
More recently, reports indicated that Kalshi was in discussions with several decentralized finance protocols and market makers, alongside Polymarket, to enhance on-chain liquidity and broaden access to its tokenized markets.
Kalshi currently serves users in over 140 countries and has successfully attracted significant venture capital. In November, as part of its latest funding round, the company raised $1 billion, a mere two months after securing $300 million in an earlier round. This most recent funding round valued the company at approximately $11 billion.