The predictions platform Kalshi has reportedly begun allowing users to buy and sell tokenized versions of its event contracts on the Solana blockchain.
According to a Monday CNBC report, Kalshi has moved closer to courting cryptocurrency users by offering tokenized contracts, which are now live on Solana. This development tokenizes bets on the predictions platform, which covers events such as US elections, sports, and more, making them tradeable on the blockchain.
"There’s a lot of power users in crypto," John Wang, Kalshi’s head of crypto, told CNBC. "This is about tapping into the billions of dollars of liquidity that crypto has, and then also enabling developers to build third-party front ends that utilize Kalshi’s liquidity."
The tokenization move could challenge the market share of prediction platforms like Polymarket by offering users more anonymity. DeFi protocols Jupiter and DFlow will reportedly bridge the company’s offchain orderbook to Solana’s liquidity.
Kalshi experienced a surge in activity in 2024 after a court ruling allowed the betting platform to offer contracts on political events leading up to a significant US election. In May, the US Commodity Futures Trading Commission moved to drop its appeal over the court’s decision.
Kalshi's Valuation Reaches $11 Billion After Funding Round
A November funding round, led by Sequoia Capital and CapitalG, reportedly raised an additional $1 billion for the predictions platform. This influx of capital has led to an estimated valuation of approximately $11 billion for Kalshi. This valuation could position Kalshi competitively with platforms like Polymarket, which received a $2 billion investment from the Intercontinental Exchange in October.
Other companies are also expanding their presence in the prediction market sector. For instance, Robinhood has entered the market through the acquisition of an FTX-linked exchange and clearinghouse. Coinbase is also reportedly exploring similar strategic moves.