Kalshi has begun offering tokenized versions of its event contracts on the Solana blockchain. This move is designed to draw crypto-native traders and expand liquidity across its markets. The company said the tokens mirror its existing regulated contracts but allow users to trade them on-chain with greater anonymity. The effort places Kalshi closer to the model used by Polymarket, its most prominent competitor, which has built a large user base by allowing direct on-chain trading.
The integration extends to decentralized finance protocols such as DFlow and Jupiter, which will act as institutional partners connecting Kalshi’s off-chain orderbook to Solana’s liquidity pools. The development shifts Kalshi further into the digital asset ecosystem at a moment when prediction markets are seeing accelerated retail and institutional activity.
Tokenization Strategy Targets Liquidity Needs
Tokenization allows a real-world financial claim to exist as a transferable digital asset on public blockchain infrastructure. For Kalshi, the strategy is aimed at tapping deeper liquidity sources as global demand for event contracts increases. Industry-wide prediction market volumes reached nearly $28 billion through October, fueled by rising interest in political, economic, and macro forecasting instruments.
Executives see crypto traders as a critical constituency. According to the company, digital asset holders tend to trade at higher frequencies and in larger sizes and contribute to tighter spreads and more reliable pricing. Bringing these users on-chain through tokenized contracts is expected to help Kalshi scale its markets while maintaining competitive execution quality.
Competitive Landscape Intensifies
Founded in 2018, Kalshi became the first US platform to offer federally regulated event contracts tied to congressional races following a prolonged legal battle with the Commodity Futures Trading Commission. The firm has since grown to more than 3,500 markets and raised over $300 million at a $5 billion valuation, backed by major venture firms including Andreessen Horowitz and Sequoia Capital. Its geographic footprint now spans more than 140 countries.
Yet the company faces renewed pressure as Polymarket prepares its US relaunch. Polymarket’s on-chain liquidity and strong crypto user base have helped it capture sizable volumes, setting a high competitive bar. Kalshi’s leadership acknowledges that sustained growth will require deeper liquidity and ongoing product innovation, positioning tokenization as a strategic lever to attract capital from the roughly $3 trillion digital asset market.
Liquidity remains a central challenge for any prediction exchange. The firm argues that broadening access to crypto-native traders strengthens price formation and helps ensure markets can support larger order sizes. Kalshi’s strategy underscores a broader trend toward merging traditional market structure with blockchain-enabled trading rails as institutional adoption of tokenized assets accelerates.