Prediction market platform Kalshi has entered the cryptocurrency landscape by launching on-chain event contracts on the Solana blockchain, per CNBC. This 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 creates a unified global liquidity pool that merges its traditional off-chain order book with on-chain liquidity.
Kalshi’s head of crypto, John Wang, highlighted the importance of on-chain and off-chain liquidity for platform growth. “The ultimate moat for any exchange is liquidity,” said Wang. “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 operate differently than traditional off-chain contracts. These are recorded on a blockchain, allowing for transparency in transactions, quick settlement times, non-custodial trading (users maintain control of funds), and integration with decentralized finance (DeFi) protocols.
Kalshi’s move mirrors the model used by Polymarket, one of its main competitors. The platform adds the advantage of connecting existing off-chain liquidity to Solana’s infrastructure.
**How Does Kalshi’s Tokenization Work?**
Tokenization involves converting real-world assets, such as event contracts, into blockchain-based tokens. On Solana, these tokenized contracts function similarly to 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, and easier integration with third-party front ends.
**Kalshi’s Global Liquidity Pool**
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 a single global pool. This offers benefits like access to deeper liquidity pools, improved pricing for contracts, and the support of third-party developers who build new interfaces and trading tools.
**Kalshi Builders Program**
Kalshi’s Builders Program offers incentives of $2 million in grants to developers who 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. The program also provides technical guidance, marketing, social media amplification, access to the global liquidity pool.
**Kalshi’s Competitors**
Kalshi is competing with platforms such as Polymarket, PredictIt, and Robinhood, which are exploring prediction markets through acquisitions or new initiatives.
**How does Kalshi’s Liquidity Aggregation Work?**
Kalshi aggregates liquidity from multiple sources: off-chain US order books, international off-chain markets, on-chain Solana liquidity through Jupiter and DFlow. This approach ensures competitive pricing, handles large trading volumes without slippage, a common issue in smaller prediction markets.
**What Types of Markets Will Users Trade?**
Kalshi supports over 3,500 event markets across various categories like political elections and legislation, economic indicators and policy moves, weather events, and cultural trends. These tokenized contracts offer accessibility to crypto users worldwide without requiring centralized custody or traditional fiat accounts.
**Current Partnerships and Builders**
Several developers are integrating Kalshi’s infrastructure: Kalshinomics for market analytics; Verso for professional tools for market discovery; Caddy for enhanced retail trading experiences. 3,500+ markets on Solana. 1.2 trillion liquidity pool!
**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. The platform is establishing a global prediction market ecosystem merging traditional finance with blockchain infrastructure. **
**Resources:**
CNBC: Kalshi makes move to court crypto traders with tokenized betting contracts,
Polymarket Press Release: Polymarket Receives CFTC Approval of Amended Order of Designation, Enabling Intermediated U.S. Market Access,
CoinDesk: Kalshi Launches Tokenized Event Bets on Solana Blockchain: CNBC,
Blockworks: Kalshi debuts ecosystem hub with Solana and Base