Kalshi Pushes Further Into Crypto With On-Chain Prediction Markets on Solana

Prediction market platform Kalshi has expanded into crypto by launching on-chain event contracts on the Solana blockchain, per CNBC. The move allows users to trade tokenized versions of Kalshi’s event contracts while leveraging blockchain-native benefits such as non-custodial trading, faster settlement, and increased anonymity. 

The development bridges Kalshi’s traditional off-chain order book with on-chain liquidity, effectively creating a unified global liquidity pool.

Kalshi’s head of crypto, John Wang, explained that combining off-chain and on-chain liquidity is central to the platform’s growth strategy. 

“The ultimate moat for any exchange is liquidity,” Wang said. ““Kalshi is the only prediction market in the world that aggregates on-chain and off-chain, US and international into one giant liquidity pool. Tokenization is the endgame: non-custodial, instant, and crypto-native.”

What Are On-Chain Prediction Markets?

On-chain prediction markets are platforms where users can bet on the outcome of events using blockchain tokens. Unlike traditional off-chain contracts, on-chain versions are recorded on a blockchain, allowing:

• Transparent transaction history
• Immediate settlement
• Non-custodial trading (users retain control of funds)
• Integration with DeFi protocols

Kalshi’s move mirrors the model used by Polymarket, one of its main crypto-native competitors, but with the added advantage of linking existing off-chain liquidity to Solana’s infrastructure.

How Does Kalshi’s Tokenization Work?

Tokenization is the process of converting real-world assets, in this case event contracts, into blockchain-based tokens. On Solana, Kalshi’s tokenized contracts work like regular contracts but allow users to trade them as tokens. This enables:

• Faster transactions using Solana’s high-speed blockchain
• Anonymous trading compared to off-chain accounts
• Easier integration with third-party front ends

Which Platforms Support Kalshi’s On-Chain Liquidity?

Kalshi is currently utilizing decentralized finance (DeFi) protocols Jupiter and DFlow to facilitate liquidity. These platforms connect Kalshi’s off-chain order book to Solana, effectively merging institutional and retail capital into one global pool. The benefits include:

• Access to deeper liquidity pools
• Improved pricing for contracts
• Support for third-party builders to create new interfaces and trading tools

Kalshi’s Builders Program incentivizes developers with $2 million in grants to create new front ends or tools that integrate with Kalshi’s on-chain contracts. Eligible participants receive a builder code that tracks trading volume through their platform and earns rewards based on that volume. Support includes:

• Technical guidance from Kalshi engineers
• Marketing and social media amplification
• Access to the global liquidity pool

Projects in areas such as analytics dashboards, trading bots, educational tools, mobile apps, and data visualizations are all eligible, aiming to increase engagement and utility.

Kalshi’s expansion onto Solana represents a significant convergence of traditional finance and blockchain-native infrastructure. Key points include:

• Integration of off-chain and on-chain liquidity
• Support for Solana’s SOL token and USDC stablecoin for direct participation
• Tokenized contracts maintain regulatory compliance while allowing crypto-native trading
• Access to a growing pool of digital asset liquidity, estimated in the trillions

The timing aligns with broader interest in prediction markets, which have drawn attention for their ability to capture sentiment on elections, economic policy, and cultural events. Kalshi itself saw increased activity after US court rulings allowed federally regulated contracts on congressional races in 2024.

How Does Kalshi Compare to Competitors?

Polymarket has been a pioneer in on-chain prediction markets, allowing users to trade contracts directly on-chain. Kalshi’s tokenization strategy puts it on a similar footing but adds the advantage of a combined liquidity pool from both off-chain and on-chain sources. Other competitors, such as PredictIt, focus primarily on regulated US operations, while Robinhood and Coinbase are exploring prediction markets via acquisitions or new initiatives.

How Does Liquidity Aggregation Work?

Kalshi aggregates liquidity from multiple sources, including:

1. Off-chain US order books
2. International off-chain markets
3. On-chain Solana liquidity through Jupiter and DFlow

This approach ensures that pricing is competitive and that the platform can handle large volumes without significant slippage, a common issue in smaller prediction markets.

What Types of Markets Will Users Trade?

Kalshi supports over 3,500 event markets covering:

• Political elections and legislation
• Economic indicators and policy moves
• Weather events
• Cultural trends and mentions sniping

Tokenized contracts allow these markets to be accessible to crypto users worldwide, without requiring centralized custody or traditional fiat accounts.

Current Partnerships and Builders

Several developers and platforms are already integrating Kalshi’s infrastructure:

• Kalshinomics: Market analytics dashboard providing real-time data for tokenized contracts
• Verso: Professional tools for market discovery and execution
• Caddy: Exploring enhanced retail trading experiences

Conclusion

Kalshi’s integration of on-chain prediction markets on Solana combines regulatory-compliant, off-chain contracts with blockchain-native features. Tokenized event contracts enable non-custodial trading, faster settlements, and deeper liquidity while attracting developers and crypto-native users. 

Through the Builders Program and partnerships with Jupiter and DFlow, Kalshi is establishing a global prediction market ecosystem that merges traditional finance with blockchain infrastructure. The platform now supports SOL and USDC deposits, over 3,500 markets, and a unified liquidity pool, creating an accessible and technically robust environment for event-based trading.

Resources:

1. Report by CNBC: Kalshi makes move to court crypto traders with tokenized betting contracts

2. Press release by Polymarket: Polymarket Receives CFTC Approval of Amended Order of Designation, Enabling Intermediated U.S. Market Access

3. Report by CoinDesk: Kalshi Launches Tokenized Event Bets on Solana Blockchain: CNBC

4. Report by Blockworks: Kalshi debuts ecosystem hub with Solana and Base