Kalshi Rolls Out Tokenized Version of Event Contracts on Solana
The federally-regulated prediction market is rolling out tokenized variations of its occasion contracts on Solana, enabling merchants to purchase and promote their Kalshi positions – similar to some other on-chain asset.
The transfer appears to be like like a direct swing at Polymarket, which till now has owned the lion’s share of on-chain prediction market traffic.
Why this issues
These tokens mirror the very same payouts because the common, off-chain contracts on Kalshi – the important thing distinction is now they’re tokenized and might transfer freely all through the Solana ecosystem.
This supplies Kalshi customers with:
- More anonymity: Instead of buying and selling solely inside Kalshi’s backyard partitions, you’ll be able to maintain and swap tokenized variations on-chain.
- Greater accessibility: Anyone plugged into the Solana ecosystem – DEXes, wallets, and frontends – can commerce them.
- Improved decentralization: Crypto customers now get self-custody, open liquidity, and permissionless buying and selling – with out giving up Kalshi’s regulated spine.
Its Solana help is already dwell, with DFlow and Jupiter already plugged in as the primary platforms bridging Kalshi’s off-chain orderbook to Solana liquidity.
Eating Polymarket’s lunch
It’s no secret that crypto merchants are already energy customers of prediction markets.
They usually drive massive place sizes, churn out vital quantity, and are clearly bigtime proponents of self-custody and privateness.
Until now, Polymarket has owned that crowd, by being totally on-chain from the start.
But Kalshi’s transfer is more likely to take a chunk out of that Polymarket pie, bridging its federally-approved platform to the on-chain world.
The timing couldn’t be higher, as prediction markets cross $28 billion in cumulative quantity this yr.
Kalshi itself has been on a tear, together with 1000’s of new betting contract markets, speedy international growth, and a fresh $1 billion raise at a whopping $11 billion valuation.
Any progress from its on-chain presence will doubtless solely compound that progress additional.
Liquidity is the entire recreation
Kalshi’s head of crypto, John Wang, has a really easy view on liquidity:
“If you don’t have liquidity, you don’t have a market.”
Tapping into the $3 trillion crypto market opens the floodgates to the sort of liquidity Kalshi wants to remain aggressive – particularly as Polymarket comes round to relaunching within the US.
More liquidity means tighter spreads, extra correct pricing, and the power for big gamers to measurement in with out severely impacting the order books.
What does this imply going ahead?
Prediction markets seem like they’re getting into a brand new period.
Regulated platforms like Kalshi are realizing they will’t ignore the pull of on-chain liquidity, whereas totally on-chain platforms like Polymarket push arduous for mainstream adoption and person progress.
Traders, on the opposite hand, simply need one of the best of each worlds: deeper liquidity, tighter spreads, extra anonymity, and smoother UX.
Kalshi’s transfer to tokenize its contracts on Solana sits proper at that intersection.
Crypto-native customers get the privateness and permissionless entry they’re used to, with out abandoning the regulatory readability that Kalshi has fought years to safe.
If Kalshi can hold increasing its markets and nail the on-chain integration, this could possibly be the primary prediction platform that’s each legally clear and genuinely crypto-native.
Not simply bridging two ecosystems, however mixing them into one thing solely new.
The submit Kalshi Rolls Out Tokenized Version of Event Contracts on Solana appeared first on DeFi Rate.
