Kalshi Expands into Crypto Space with Tokenized Event Contracts on Solana
Kalshi has integrated the Solana blockchain to launch tokenized versions of its event contracts on-chain, marking a significant expansion into the crypto space.
Kalshi’s move into the crypto market is expected to increase liquidity across its platforms, as it competes directly with Polymarket, a leading player in the decentralized prediction markets. The company’s traditional contracts, which run on a regulated exchange, require full identity verification, whereas the tokenized alternatives offer a distinct advantage in terms of anonymity and speed.
Tokenization and its Benefits
Tokenization is the process of creating a digital version of a real-world asset, in this case, event contracts. By converting these contracts into tokens, Kalshi enables them to be freely traded on the Solana blockchain. This move is expected to operate at lower costs, provide global accessibility, and achieve better pricing efficiency. The on-chain versions also enable pseudo-anonymous trading through crypto wallets, rather than traditional identity-based accounts.
Kalshi’s tokenized contracts will allow the company to tap into the cryptocurrency community, which has poured billions of dollars into decentralized prediction markets like Polymarket. The company has already developed a dedicated on-chain ecosystem strategy and appointed John Wang, a well-known figure in the Web3 space, as head of the crypto department to oversee the expansion. Wang noted that the move is also about “enabling developers to build third-party frontends that leverage Kalshi’s liquidity.”
Competition and Regulatory Environment
Kalshi will contend with a growing list of new entrants flooding the U.S. market with alternative platforms, following the Commodity Futures Trading Commission’s decision to unblock political markets and withdraw its appeal of Kalshi’s court victory earlier this year. The commission also issued a no-action letter to Polymarket’s acquired companies QCX LLC and QC Clearing LLC, which was seen as a signal of regulatory support and gave the sector another layer of legitimacy.
Kalshi has been working with various crypto companies, including Solana, since May 2025, when the platform enabled SOL deposits through a partnership with Zero Hash. The company has also collaborated with Jupiter, a decentralized exchange based on Solana, and has funded developer grants through its ecosystem hub to encourage third-party innovation around its liquidity. For custody and withdrawal of its stablecoins, Kalshi has selected Coinbase as a partner, which now holds the platform’s USDC reserves under institutional custody.
Kalshi now serves users in more than 140 countries and has raised significant venture capital, with its latest funding round valuing the company at around $11 billion. As the company continues to expand its operations in the crypto space, it is likely to face increased competition from other players in the market. However, with its strong track record and commitment to innovation, Kalshi is well-positioned to succeed in this rapidly evolving industry.
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