Regulated prediction market Kalshi is expanding its reach into the crypto space by launching tokenized versions of its event contracts on the Solana blockchain. The move, confirmed by company insiders on December 1, is a direct strategy to tap into the deep liquidity of the cryptocurrency community and enhance its market offerings.

A Strategic Play for Crypto Liquidity

Kalshi’s new tokenized contracts represent a significant shift from its traditional, regulated exchange model, which requires full identity verification. By creating digital versions of its event contracts on-chain, the company can offer pseudo-anonymous trading through crypto wallets, appealing directly to the DeFi user base. This approach is designed to lower operational costs, provide global accessibility, and improve pricing efficiency across its markets.

The company is making an aggressive push to attract crypto users, who have funneled billions into decentralized prediction markets. The sector has seen a significant rise in activity, with trading volumes reaching nearly $2.3 billion in a single week in October alone.

Challenging Polymarket’s Dominance

With this launch, Kalshi positions itself as a direct competitor to crypto-native rival Polymarket. While Kalshi already has a large global user base and a strong regulated presence, its on-chain initiative aims to level the playing field in terms of speed and user anonymity. The competition is heating up in a market that has recently gained more regulatory clarity in the United States.

The landscape shifted after the Commodity Futures Trading Commission (CFTC) cleared political markets and dropped an appeal against a court victory for Kalshi earlier in the year. The commission later issued a no-action letter to entities acquired by Polymarket, a move widely seen as a signal of regulatory support that added a new layer of legitimacy to the entire sector.

Building an On-Chain Ecosystem

To lead the expansion, Kalshi has established a dedicated on-chain strategy and appointed Web3 veteran John Wang as its head of crypto. Wang noted that the initiative is not just about attracting new traders but also about building a broader ecosystem. “There’s a lot of power users in crypto,” he said, explaining that the move is also about “enabling developers to build third-party front ends that utilize Kalshi’s liquidity.”

By drawing in crypto-native traders, Kalshi aims to deepen its market liquidity, which in turn allows for more accurate and competitive pricing on its event contracts.

Partnerships and Financial Strength

Kalshi’s integration with Solana began to materialize in May 2025, when the platform enabled SOL deposits through a partnership with Zero Hash. The collaboration has since expanded to include initiatives like a beta prediction market with Jupiter, a major Solana-based decentralized exchange. To further bolster its on-chain infrastructure, Kalshi selected Coinbase to provide institutional custody for its USDC reserves.

The company’s ambitious expansion is backed by substantial capital. Kalshi raised $1 billion in a November funding round, which valued the company at approximately $11 billion. This followed a $300 million round secured just two months prior, positioning the firm to forcefully pursue its growth into the decentralized finance landscape.