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- Kalshi prediction platform partners with the Solana blockchain, aiming to attract users in the $3 trillion crypto market.
- Kashi and Polymarket are adopting new crypto tools in the fight for dominance.
Prediction firm Kalshi has partnered with Solana. With this new alliance, the platform hopes to take a good market share in the broader crypto market.
How the Kashi-Solana Partnership Will Work
According to a CNBC report, Kalshi plans to tokenize thousands of its event contracts on the Solana blockchain. The move will bridge Kalshi’s traditional off-chain order book with on-chain liquidity to attract crypto-native traders and scale operations.
Simply explained, the partnership will allow Kalshi bettors to buy and sell tokenized versions of their wagers on Solana.
The tokenized versions of the contracts work similar to regular ones previously found on the Kalshi platform. However, users have more anonymity since they are trading SOL tokens instead of the actual contracts.
Also, the partnership with Solana will allow users to trade directly on-chain, putting Kalshi on the same level with its rival, Polymarket.
Kalshi told CNBC that support for tokenized wagers linked to its event contracts is live on Solana. The firm added that decentralized finance protocols DFlow and Jupiter will act as institutional clients. The function of the protocols is to bridge the off-chain orderbook of Kashi to Solana’s liquidity.
The collaboration also shows how the prediction marketplace is increasing its efforts to win crypto holders as demand for event contracts surges. John Wang, the head of crypto at Kalshi, said appetites for prediction markets are growing rapidly.
In October, the combined trading volume of prediction markets hit nearly $28 billion. During the week of October 20, the weekly record comes as high as $2.3 billion.
Considering the sharp growth of the sector, Kalshi aims to tap into the $3 trillion digital asset market. The goal is to shore up the liquidity needed to scale its offerings.
Prediction Platforms Pushing Further into Crypto
The partnership between Kalshi and Solana signals an increased push into the crypto market among top prediction platforms.
On its part, Kashi announced earlier this year that it is allowing Bitcoin (BTC) deposits through Zero Hash. According to our analysis, Kashi aimed to attract more users from the growing Web3 and crypto community.
Notably, Kalshi has existed since 2018. It was the first exchange to launch federally regulated event contracts on U.S. congressional races for American traders in late 2024. This comes shortly after winning a years-long legal battle against the Commodity Futures Trading Commission (CFTC).
On its part, Polymarket is preparing for a relaunch after gaining approvals from the CFTC to operate in the U.S. The authorization allows the platform to onboard U.S. customers and brokerage partners, as summarized in our earlier news story.
While prediction platforms are pushing to win crypto users, some crypto-based entities are showing interest in the market. In our latest update, we examined, Hedera Foundation introduced a new prediction platform, VictorAI. The platform allows users to place bets on the Hedera blockchain.
In a similar move, Robinhood introduced a prediction market in partnership with Kalshi. The move signaled its ambition to become a comprehensive financial services provider.
