Kalshi has begun launching tokenized versions of thousands of its prediction markets on the Solana blockchain as the company seeks deeper liquidity, faster execution, and broader crypto-native participation. The move expands its reach beyond its regulated interface and positions the U.S. platform directly against Polymarket, which operates on Polygon and recently secured approval to reenter the country.
During November, Kalshi reached $5.8 billion in spot volume, and Polymarket reached more than $3.7 billion. With on-chain growth accelerating, one question now shapes the sector: how far will tokenization reshape prediction markets?
Onchain Markets Target Liquidity and Speed
Kalshi’s new contracts work like standard markets on its platform, yet now exist as digital assets on Solana. Each contract becomes a token that users can trade through Solana wallets. This allows direct access without opening accounts or completing checks.
Additionally, the company says this model offers increased privacy while still providing regulated event markets in the U.S. It selected Solana due to its low fees and strong throughput. These features matter for markets that require rapid execution and deep liquidity to function smoothly.
Regulators continue to watch tokenization trends, and the SEC is preparing to review new rules for tokenized assets. This creates an evolving landscape as demand grows.
Competition With Polymarket Intensifies
Kalshi’s on-chain expansion closely follows the CFTC’s recent clearance for Polymarket to reenter the U.S. market. The regulator had previously banned the unregistered platform, which then focused on international growth.
Meanwhile, Kalshi dominated domestic activity during that period. Both firms have now entered a hyper-growth phase following the regulator’s policy shift on event derivatives. Furthermore, Polymarket enabled SOL deposits earlier this year, showing its own interest in Solana’s user base and liquidity ecosystem.
Building Infrastructure Across Solana
Kalshi is working with Solana-based protocols DFlow and Jupiter to connect its off-chain order book to Solana’s liquidity. This link allows a regulated market structure to operate alongside open liquidity pools on the network. The company said these integrations will support institutional access and deepen market depth.
Additionally, Kalshi plans to release “Kalshi Builder Codes” to allow developers to monetize applications built on its global liquidity pool. The firm views tokenization as a key element of its strategy and expects on-chain markets to become standard.
The startup has already taken earlier steps into the Solana ecosystem. In September, it launched a grant program for builders and creators working on prediction applications on Solana and Coinbase-incubated Base. Kalshi also uses ZeroHash for crypto deposits and withdrawals across multiple networks, including Aptos, Avalanche, Sui, and several Ethereum Layer 2s.
Robinhood accounted for roughly 57% of Kalshi’s volume in October, demonstrating the importance of distribution partners as the company expands into tokenized trading. Kalshi intends to extend this model to more blockchains as adoption grows and as users seek programmable financial instruments.