Kalshi is taking a major step into crypto by tokenizing its prediction markets on the Solana blockchain, opening the door to permissionless monetization and deeper liquidity.
The U.S.-based platform is rolling out tokenized versions of thousands of betting markets, aiming to attract crypto-native users while tapping into global on-chain capital.
Why Solana, and Why Now?
By moving markets on-chain, Kalshi can transform its event contracts into tradable blockchain assets, making them easier to integrate across decentralized finance. The move also puts Kalshi in direct competition with Polymarket, which is already native to the Polygon blockchain.
Both platforms are growing fast. November was the biggest month yet:
- Kalshi: $5.8 billion in spot volume
- Polymarket: Over $3.7 billion in volume
This surge follows a major shift in U.S. regulation. After years of caution, the Commodity Futures Trading Commission (CFTC) recently cleared the way for Polymarket to reenter the U.S., accelerating growth across the entire prediction market sector.
Building a Permissionless Ecosystem
Kalshi is working with Solana-based protocols DFlow and Jupiter to bridge its off-chain order book to Solana’s on-chain liquidity. This integration powers Kalshi Builder Codes, a new framework that lets developers permissionlessly build and monetize applications on top of Kalshi’s global liquidity pool.
That means trading dashboards, weather sites, AI agents, and other apps can now earn fees and rewards based on the volume they generate, without needing special approvals.
According to Kalshi’s head of crypto, John Wang, tokenization unlocks billions of dollars in liquidity, enables third-party front ends, and helps maintain competitive pricing as prediction market activity accelerates.
Not Kalshi’s First Solana Bet
Kalshi has been exploring Solana for months. In September, the company launched a grant program to support builders pushing the boundaries of prediction markets on Solana and Coinbase’s Base layer-2.
Still, the move carries risk. Bernstein estimates Robinhood accounted for 57% of Kalshi’s October volume, meaning the platform remains heavily reliant on traditional distribution. Tokenizing its markets represents a bold attempt to diversify distribution and reduce dependency on centralized partners.
A High-Stakes Competitive Race
Kalshi raised $1 billion last month at an $11 billion valuation, shortly after reports that Polymarket is seeking fresh funding at a valuation exceeding $12 billion. As both platforms push deeper into crypto-native infrastructure, the competition is intensifying fast.
The Takeaway
By tokenizing prediction markets on Solana, Kalshi is betting that on-chain liquidity, permissionless builders, and open monetization are the future of event-based trading. If successful, this move could reshape how prediction markets scale—and determine who wins the race between Kalshi and Polymarket.
