Kalshi launches tokenized prediction contracts on Solana to attract crypto users
Predictions market platform Kalshi has integrated Solana to begin launching tokenized contracts for its growing lineup of event-based markets.
According to a CNBC report, Kalshi has expanded its existing partnership with Solana and will now start issuing tokenized versions of its contracts directly on-chain, in a bid to attract crypto-native users.
Tokenization involves creating blockchain-based representations of real-world assets, which allows contracts to be traded more freely, transparently, and at lower cost than traditional systems.
In general, Kalshi’s standard event contracts operate under a federally regulated exchange framework with full KYC requirements.
However, with the switch to tokenized contracts, the company will offer crypto users faster execution and greater anonymity.
Kalshi is also expected to benefit from deeper market liquidity and lower transaction costs, taking advantage of Solana’s high throughput and minimal fees.
By moving on-chain, Kalshi hopes to draw in the crypto trading audience that has poured billions into decentralized markets operated by its competitor Polymarket.
“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,” Kalshi’s head of crypto, John Wang, said in an accompanying statement.
US Prediction market heats up
While it is yet to be seen whether Kalshi can woo the crypto audience and match Polymarket’s momentum, the US prediction markets space is rapidly expanding in the meantime, with new entrants surfacing.
For instance, Polymarket itself is looking to re-enter the US market after acquiring CFTC-regulated entities.
At the same time, new players like Manifold, Crypto.com, and Donald Trump-affiliated Truth Social, among others, have launched similar initiatives, with more expected to follow.
Much of this momentum was triggered by regulatory shifts over the past year. In 2024, the Commodity Futures Trading Commission dropped its appeal against Kalshi in a key court case regarding political markets, effectively clearing the path for federally approved event contracts.
Meanwhile, in September 2025, the CFTC issued a no-action letter to QCX LLC and QC Clearing LLC, the two regulated entities acquired by Polymarket. That letter relaxed certain reporting obligations and allowed event contracts to move forward under existing federal rules.
Together, these developments were interpreted as a turning point that jump-started a new era for the prediction markets space, drawing in demand from both retail traders and institutional investors.
Both Kalshi and Polymarket have managed to draw in significant venture capital over the past several months.
Kalshi, for instance, recently closed a $1 billion funding round led by Sequoia and CapitalG, which pushed its valuation to $11 billion.
Kalshi pushes back against state regulators
However, even as Kalshi finds traction at the federal level, it has faced growing resistance from state-level regulators across jurisdictions, including New York, New Jersey, and Nevada.
Regulators in those states are concerned that Kalshi’s sports or culture-based contracts may fall under their definitions of gambling, and have issued cease-and-desist orders or threatened enforcement.
Kalshi, in the meantime, has taken a defensive stance. It has filed lawsuits to assert its status as a federally regulated derivatives exchange, arguing that state-level gambling laws should not apply to its CFTC-approved markets.
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