Kalshi expands prediction market with tokenized contracts on Solana

Kalshi is pushing prediction markets further into the crypto space as global demand accelerates. Growing interest in event-based trading has pushed the platform to tokenize event contracts on Solana, providing users with more privacy in sensitive markets. Analysts believe the move could position Kalshi to challenge competitors and keep pace with the industry's rapid growth.

DFlow and Jupiter connect Kalshi’s off-chain markets to Solana’s trading layer

Kalshi has started allowing users to buy and sell tokenized versions of its event contracts on the Solana blockchain, according to a report published Monday by CNBC. Traders can now access on-chain versions of markets related to US elections, sports scores, economic data releases and other major events.

This expansion allows users to maintain their privacy while accessing crypto's native liquidity, rather than relying solely on Kalshi's standard interface.

As part of this transition, decentralized finance protocols DFlow and Jupiter will act as institutional clients. Basically, they will connect Kalshi's off-chain order book to Solana's trading infrastructure, providing access to deeper liquidity pools and smoother execution.

Demand on prediction markets has exploded, with cumulative volume reaching nearly $28 billion in October. The sector even broke a weekly volume record of $2.3 billion during the week of October 20, according to the Crypto.com research team.

Crypto observers have pointed to political tensions, global uncertainty and growing interest in event-based speculation as key catalysts.

Kalshi's strategy brings several functional changes that could reshape the way traders interact with the platform:

• Tokenized contracts can circulate throughout the Solana ecosystem.
• On-chain settlement removes friction for users already active in crypto.
• Liquidity increases as DeFi protocols redirect order flow to Kalshi markets.
• Privacy is enhanced because activity takes place via blockchain addresses.
• Secondary markets are becoming easier to access, allowing for faster and more flexible trading.

Big Exchanges Get Involved in Event Markets as Competition Widens

John Wang, who heads Kalshi's crypto division, told CNBC that access to the wider $3 trillion digital assets market will help the company support growing demand and maintain liquidity as interest in event markets grows.

There are a lot of power users in crypto. This is about tapping into the billions of dollars of liquidity that crypto offers, and then also allowing developers to build third-party interfaces that use Kalshi's liquidity.

John Wang

Kalshi, founded in 2018, became the first exchange to offer contracts for federally regulated events tied to the U.S. Congressional elections in late 2024. The move followed a lengthy legal dispute with the Commodity Futures Trading Commission. After a court ruling in Kalshi's favor, activity on the platform increased ahead of the US election cycle, prompting the CFTC to withdraw its appeal in May.

Growth continued thanks to several major fundraising rounds. Last fall, the company raised more than $300 million at a valuation of $5 billion while expanding to more than 3,500 active markets in 140 countries. Another round in November raised $1 billion at an estimated valuation of nearly $11 billion.

However, Kalshi is not alone in this rapid expansion of prediction markets. Polymarket received a $2 billion investment from the Intercontinental Exchange. Platforms like Robinhood and Coinbase are also moving deeper into this sector.