Kalshi selects Coinbase Custody to secure USDC reserves

A major partnership between Kalshi and Coinbase is set to strengthen the infrastructure behind event-based trading in the U.S.

Kalshi, the largest regulated prediction market platform in the U.S., has chosen Coinbase Custody to hold the USDC used across its event contracts. 

The company announced the move on Nov. 13, saying it will give traders greater confidence in the stability and safety of the funds backing each market. Coinbase Custody provides cold storage, segregated accounts, and compliance standards commonly used by major institutions. 

Building stability into event-based markets

Prediction markets rely heavily on stability. Users need to know that the money they deposit is secure, especially when trading on outcomes like elections, economic indicators, or sports results. Kalshi said the partnership brings event contracts closer to mainstream financial assets by pairing its regulated exchange framework with Coinbase’s custody infrastructure.

The company also pointed out the importance of USD Coin (USDC) as the core settlement asset on its platform. Because of its fast settlement and steady price, USDC, a fully backed digital dollar, is suitable for real-time trading. Kalshi says traders can operate with more assurance in the system’s integrity now that Coinbase is protecting these reserves.

This announcement comes after Kalshi recently integrated with Coinbase’s layer-2 network Base in late October. This update reduced the barrier for new users by enabling faster and less expensive USDC deposits.

A year of rapid expansion for Kalshi

Kalshi has grown significantly in 2025. Funding offers in October valued the company at over $10 billion, double the $5 billion valuation from a separate $300 million round that same month, indicating a surge in investor interest.

Earlier in June, the company raised $185 million at a $2 billion valuation, bringing total funding to $415 million. Competitors like Polymarket have also seen rising investment, reflecting the broader momentum in event-based trading.

The platform has also expanded its reach. On Nov. 6, Google Finance began displaying real-time odds from Kalshi and Polymarket, bringing prediction data into mainstream financial search tools. Kalshi’s 2025 election markets gained attention for predicting Donald Trump’s victory hours before traditional media called the race.

With the Coinbase Custody partnership now in place, Kalshi says it is building a foundation designed for long-term stability and growth.