Never in the history of mankind has it been this easy to “put your money where your mouth is.” Prediction market activity has surged in recent years. A Crypto.com report notes that “between January to October 2025, prediction markets generated over US$27.9 billion in trading volume”.
Kalshi, the largest regulated prediction market, has launched tokenized versions of its event contracts on Solana. This development brings thousands of existing markets onchain and opens direct access to crypto traders who have flocked to blockchain-based platforms in recent years. The move signals a deeper shift in the prediction market landscape as Kalshi seeks to position itself aggressively in a rapidly growing sector and win over Polymarket’s crypto-centric customer base.
Why Kalshi Is Expanding Onchain
Kalshi confirmed that users can now buy and sell tokenized event contracts on Solana. These tokens mirror the pricing and payouts of Kalshi’s traditional contracts but allow users to trade with greater anonymity through blockchain rails. The model brings Kalshi closer to the experience offered by Polymarket, which has built its brand on direct onchain trading.
The company has partnered with Solana-based protocols DFlow and Jupiter to connect its offchain orderbook to Solana’s liquidity. By doing so, Kalshi aims to merge its regulated infrastructure with the depth of the crypto economy. According to Kalshidata, the platform has processed $19.6 billion in volume since launch, and is steadily inching toward the $20 billion mark.
Speaking to CNBC, John Wang, Kalshi’s head of crypto, said that integrating onchain liquidity allows the exchange to reach power users who tend to trade at higher volumes and provide deeper capital pools. “There’s a lot of power users in crypto. 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”, he said.
The platform is currently averaging over $12 million in daily volume. By gaining exposure to the roughly $3 trillion digital asset market, Kalshi intends to scale its offering in an environment where liquidity has become the most important competitive factor.
Competitive Landscape and the Push Against Polymarket
Kalshi and Polymarket have formed an increasingly dominant duopoly over global prediction markets. According to The Block data, Kalshi reported $5.8 billion in volume in November while Polymarket surpassed $3.7 billion. Both hit new all-time highs as retail interest increased and integrations with major platforms expanded.
Kalshi’s decision to tokenize its markets strengthens its position against Polymarket at a moment when the competitive gap is narrowing. Polymarket recently secured an updated CFTC order allowing it to relaunch in the United States with intermediated access and enhanced oversight. With its return to the U.S. approved, Polymarket is now in a position to challenge Kalshi’s earlier advantage as the only regulated domestic exchange.
Kalshi is responding by broadening distribution onchain. The firm launched the Kalshi Builders Codes program, offering $2 million in grants to attract developers who want to integrate prediction markets into trading terminals, dashboards, mobile apps, etc. Eligible developers receive builder codes that track the volume they bring into Kalshi’s liquidity pool, creating a revenue pathway for third-party front ends.
Regulatory Pressure and Public Scrutiny
The company’s expansion comes amid heightened regulatory friction in the United States. Nevada regulators successfully dissolved a preliminary injunction that had shielded Kalshi from enforcement actions. While the state has agreed not to pursue action until a court decision on Kalshi’s request for a stay, the company still faces uncertainty as it appeals. Similar disputes are unfolding in several other states.
Kalshi argues that its federally issued CFTC license grants nationwide approval, but state regulators contend that prediction markets resemble gambling products that fall under local jurisdiction. The legal environment places Kalshi in a complex position, as it simultaneously pursues global expansion while defending its domestic footprint.
Growth, Funding, and Market Scale
Despite these challenges, Kalshi’s business has expanded quickly. The company, founded in 2018, runs about 3,500 markets and raised $1 billion at an $11 billion valuation shortly after announcing the expansion to Solana.
Industry data shows rapid acceleration across both centralized and onchain prediction platforms. Media outlets and financial data providers have begun integrating live market odds, increasing visibility for both Kalshi and Polymarket. Galaxy Digital has also explored liquidity partnerships with each platform, underscoring institutional interest.
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