The prediction platform Kalshi has recently started enabling users to purchase and sell tokenized versions of its event contracts utilizing the Solana blockchain. This approach promises to offer greater user anonymity while engaging in betting through tokenization.

On Monday, a CNBC report highlighted Kalshi’s strategic shift to attract cryptocurrency enthusiasts by launching these tokenized contracts. Users can now trade bets on various events, including U.S. elections and sports, on the blockchain.

“There’s a lot of power users in crypto,” John Wang, Kalshi’s head of crypto, stated. “This is about tapping into the billions of dollars of liquidity that crypto has, and then also enabling developers to build third-party front ends that utilize Kalshi’s liquidity.”

Image Source: Kalshi

This move is seen as a challenge to competitors like Polymarket by enhancing user confidentiality. DeFi protocols Jupiter and DFlow aim to connect Kalshi’s off-chain order book to the liquidity present on Solana.

Kalshi experienced significant activity growth in 2024 following a favorable court ruling, which enabled the platform to offer contracts on political events leading to key U.S. elections. The U.S. Commodity Futures Trading Commission also decided to withdraw its appeal against this decision.

Kalshi’s Valuation Surges to $11 Billion

In November, a funding round led by Sequoia Capital and CapitalG managed to raise an additional $1 billion for Kalshi, bringing its estimated valuation to approximately $11 billion. This positions Kalshi favorably, comparable to Polymarket, which secured a $2 billion investment from the Intercontinental Exchange recently.

Furthermore, other companies like Robinhood have entered the prediction market space through the acquisition of an FTX-linked exchange, with Coinbase also considering similar ventures.