Prediction market platform Kalshi is accelerating its push into crypto, rolling out tokenized versions of thousands of its markets on Solana.
Key Takeaways
- Kalshi launches tokenized markets on Solana.
- The move comes as Polymarket recently relaunched in the U.S. after gaining CFTC approval.
- The launch comes as Kalshi is about to face a nationwide lawsuit.
The move is one of the company’s most considerable on-chain efforts to date and deepens its rivalry with Polymarket, which operates on Polygon and has also seen rapid growth.
Both platforms posted record activity in November, with Kalshi reaching $5.8 billion in volume and Polymarket surpassing $3.7 billion.
The expansion follows a major shift in the regulatory environment.
A recent policy reversal by the U.S. Commodity Futures Trading Commission opened the door for Polymarket to re-enter the U.S. market, restoring direct competition between the two platforms. Kalshi is now working with Solana-based protocols and has already invested in Solana integrations.
The rapid expansion of Kalshi’s crypto involvement is part of an ongoing battle between the two prediction market giants, which has also seen both strike major deals with sports leagues and financial information companies.
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Kalshi hit with nationwide class action
Even as Kalshi grows, it faces a new legal challenge. A new class action lawsuit filed in the New York federal court alleges the company is operating an unlicensed sports betting platform while misleading customers about the nature of its markets.
The suit names seven plaintiffs and seeks to recover losses from thousands of users, with the possibility of tripled damages.
The complaint argues that Kalshi’s sports contracts function like standard bets, covering winners of NFL Thanksgiving games and player performance totals. It also claims users are often betting not against other traders, but against Kalshi itself or market-maker affiliates when prices diverge from internal odds.
Kalshi rejects the allegations and emphasizes that it operates as a federally regulated designated contract market under the jurisdiction of the CFTC.
The case is one of several disputes playing out nationwide. Nevada regulators recently won a key ruling allowing them to pursue action against Kalshi for allegedly offering unlawful sports betting. Other prediction market operators are facing similar state-level challenges.
Robinhood, Susquehanna expand with LedgerX takeover
Kalshi’s regulatory battles arrive as the broader prediction market industry attracts deep-pocketed entrants. Robinhood and Susquehanna International Group agreed to acquire 90% of LedgerX, a regulated exchange previously owned by FTX. The deal will enable Robinhood to launch a futures and derivatives exchange and clearinghouse in partnership with Susquehanna.
The race to dominate event-driven markets has intensified since courts weakened the CFTC’s prohibition on election betting. Major institutions are now pouring in, with the parent company of the New York Stock Exchange having invested up to $2 billion in Polymarket, and Kalshi has recently raised $1 billion at an $11 billion valuation.
The rapid influx of capital and regulatory uncertainty is pushing prediction markets into one of the most competitive phases in their short history.
