Tokenized Event Contracts Go On-Chain

In a bid to reach deeper into the crypto community, Kalshi is rolling out new tools on Solana that it hopes will transform prediction markets.

Kalshi launches tokenized contracts on Solana

Kalshi has introduced tokenized versions of its regulated event contracts on the Solana blockchain, aiming to tap into existing crypto liquidity and attract on-chain traders. The move, revealed by company insiders to CNBC on Dec. 1, is designed to bring its established prediction platform closer to the digital asset ecosystem.

Unlike its traditional exchange, which requires full identity verification under U.S. regulation, Kalshi’s new tokenized contracts will live directly on-chain. Moreover, these contracts are structured to mirror the platform’s core markets while offering the speed and flexibility associated with high-performance blockchains.

These developments position Kalshi in more direct competition with Polymarket, the leading crypto-native prediction venue. However, the company is betting that a combination of regulatory clarity and tokenization will give it a differentiated edge in the U.S. market.

How tokenized event contracts work on Solana

For less technical users, tokenization simply means creating a digital representation of a real-world asset. In this case, Kalshi is turning event contracts into tokens that can be freely traded on the Solana network, where they settle and move like any other on-chain asset.

By moving contracts onto Solana, Kalshi expects to cut operational costs, unlock global access, and improve pricing efficiency. Moreover, on-chain settlement allows users to interact through crypto wallets, enabling pseudo-anonymous trading rather than relying exclusively on Kalshi’s identity-based accounts and legacy infrastructure.

The design closely tracks how many decentralized prediction markets operate today, but with a bridge back to Kalshi’s regulated framework. That said, the company still emphasizes compliance for its core exchange as it experiments with more crypto-native rails.

Competing with Polymarket in a booming sector

Prediction markets have become a major area of interest in the U.S., especially around political and macroeconomic events. Kalshi already operates a sizable, regulated platform, yet it now wants to capture users who have poured billions of dollars into Polymarket and similar on-chain venues.

Sector activity has accelerated sharply, with trading volumes across prediction platforms hitting nearly $2.3 billion in a single week in October. However, Kalshi believes that bringing its event markets on-chain can help it share in that liquidity and offer more accurate pricing as order books deepen.

The company has built a dedicated on-chain ecosystem strategy and named John Wang as its head of crypto to lead the new phase of growth. In his view, the kalshi solana initiative is as much about infrastructure as it is about new users.

Developers and liquidity depth

“There’s a lot of power users in crypto,” Wang said, highlighting that the plan is also about enabling developers to build third-party front ends that plug into Kalshi’s liquidity. Moreover, open interfaces on Solana could turn the platform into a back-end engine for multiple prediction applications.

Wang also underscored the importance of liquidity depth. By attracting crypto-native traders who are comfortable with on-chain prediction trading, Kalshi hopes to tighten spreads and offer more competitive odds across its markets, especially during high-volatility events.

Besides Polymarket, Kalshi faces a growing field of rivals that have entered the U.S. market since the Commodity Futures Trading Commission cleared political markets. That decision followed the CFTC dropping its appeal over Kalshi’s court victory earlier this year, which many analysts saw as a turning point.

Regulatory signals and competitive landscape

Months after that court outcome, the CFTC also issued a no-action letter to QCX LLC and QC Clearing LLC, entities acquired by Polymarket. The move was widely interpreted by investors as a sign of regulatory support and added another layer of legitimacy to the prediction market space.

However, the same regulatory clarity is also intensifying competition. New entrants are rapidly launching alternative platforms, each promising different product sets, user experiences, and approaches to compliance. Kalshi’s answer is to fuse its regulated exchange structure with the speed of Solana-based infrastructure.

In this environment, the ability to connect with tokenized event contracts and route orders efficiently will likely matter as much as brand recognition. That said, Kalshi is leaning on both its regulatory track record and its expanding crypto integrations.

Strategic partnerships in the Solana ecosystem

Kalshi’s relationship with Solana began to formalize in May 2025, when the platform enabled SOL deposits via a partnership with Zero Hash. Since then, the two firms have worked together on several initiatives aimed at lowering friction between fiat-regulated markets and blockchain users.

One notable project was the launch of a beta prediction market by Jupiter, a Solana-based decentralized exchange, which integrated Kalshi’s markets on the back end. Moreover, Kalshi has funded developer grants through its ecosystem hub to spur third-party innovation and extend its liquidity across more interfaces.

For stablecoin custody partners and payouts, Kalshi selected Coinbase as its institutional custodian. Coinbase now holds the platform’s USDC reserves, providing a regulated anchor for dollar-denominated balances that flow into and out of on-chain activity.

Expanding on-chain liquidity

More recently, reports indicated that Kalshi has been in talks with several decentralized finance protocols and market makers, alongside Polymarket. The objective is to deepen crypto liquidity aggregation tools and broaden access to the platform’s tokenized markets as more products move to Solana.

Kalshi now serves users in more than 140 countries and has attracted significant venture capital backing. In its latest funding round, the company raised $1 billion in November, less than two months after securing $300 million in an earlier round, bringing its valuation to roughly $11 billion.

In summary, Kalshi’s crypto expansion via Solana positions the firm at the crossroads of regulated finance and blockchain-native trading. If it can successfully marry compliance with speed, the platform could become a central hub for global prediction markets and on-chain liquidity.