Kalshi has transitioned its entire prediction market system to an on-chain framework by introducing tokenized event contracts on the Solana blockchain. The company indicated that this redesign allows its contracts to function as blockchain-native digital assets that users can trade directly through Solana wallets. By moving away from traditional account-based models, Kalshi intends to offer a faster, more private, and more accessible trading experience for its growing community of market participants.
A New Phase in Kalshi’s Market Architecture
The shift to tokenized event contracts marks a significant evolution in Kalshi’s operational model. Instead of relying on legacy infrastructure that requires users to undergo account creation and extensive verification procedures, each event contract now exists as a Solana-based token. This approach enables users to buy, sell, and trade contracts freely, relying only on their blockchain wallets to manage positions.
Kalshi’s leadership has suggested that this model enhances user privacy while still aligning with U.S. federal regulatory standards. Although its system now leverages decentralized technology, the platform remains under regulatory oversight. This strategic move also places Kalshi in more direct competition with Polymarket, one of the leading platforms already operating on-chain prediction markets.
Why Kalshi Selected Solana
Kalshi’s decision to build on Solana stems from the network’s ability to handle high transaction throughput at a significantly lower cost than competing blockchains. With fast processing speeds and minimal fees, Solana is considered suitable for prediction environments where real-time execution and deep liquidity are essential. Kalshi views these capabilities as necessary to attract both retail and institutional traders while differentiating itself in the rapidly expanding prediction market industry.
Growing Institutional Access Through DeFi Partnerships
The company is also broadening its reach by integrating with decentralized finance protocols. Kalshi has partnered with platforms such as DFlow and Jupiter, which connect institutional systems to Kalshi’s off-chain order book. Through these partnerships, institutional traders gain streamlined access to Kalshi’s markets while benefiting from liquidity on Solana-based decentralized protocols.
Tokenized predictions powered by Kalshi are live on @Solana
$2M+ in builder grants are open, @AxiomExchange is next, and more chains coming soon.
Welcome to the "Powered by Kalshi" era. pic.twitter.com/0zlNoyZNDA
— Kalshi (@Kalshi) December 1, 2025
This blended structure—combining Kalshi’s regulatory framework with DeFi liquidity—strengthens the platform’s market depth and long-term scalability. The company believes this approach will support rising demand for event-linked trading instruments while reinforcing its competitive stance against Polymarket.
Industry Expansion and Rising Trading Activity
The launch of tokenized contracts comes during a period of substantial growth in the prediction market sector. Industry-wide trading volumes approached $28 billion by October, reflecting heightened interest in markets tied to political, economic, and cultural outcomes. Kalshi reported increased activity among its own users as traders sought new ways to hedge or express views on global events.
To support accurate pricing across thousands of active markets, Kalshi acknowledges the need for stronger liquidity. Crypto-native traders have emerged as a meaningful source of capital, and the company expects that an on-chain model will deepen liquidity pools while improving transaction speeds. Executives suggest that this change will enhance overall trading efficiency and make the platform more competitive within the tokenized prediction ecosystem.
Looking Ahead to Multi-Chain Expansion
Kalshi has expressed plans to extend its tokenized market model to other blockchains as demand for decentralized prediction platforms continues to rise. The company anticipates that tokenization will become a standard feature in the sector, enabling prediction markets to expand in scale, transparency, and accessibility. Kalshi views its early move into fully on-chain operations as a foundation for long-term growth and broader industry adoption.