Prediction market platform Kalshi announced Monday it's taking its contracts on-chain with a new integration on the Solana (SOL) network. The move lets users trade prediction contracts directly on the blockchain, marking a significant shift for the regulated U.S. platform.

Going Crypto-Native

Kalshi isn't subtle about its ambitions here. The company posted on X that it's tapping into "billions of on-chain liquidity" through partnerships with Solana-based DeFi protocols like DFlow and Jupiter.

"Tokenization is the endgame. It is non-custodial, instant, and crypto native," Kalshi said in a press release.

The platform is rolling out what it calls a "hybrid request for quote" system that automatically executes trades on-chain. "This structure gives builders and traders a fast, transparent, and fully programmable way to interact with real-world events," the company explained.

For those unfamiliar, tokenization is essentially creating a digital representation of real-world assets—think stocks, bonds, or in this case, prediction market contracts.

Catching Up To Polymarket

The on-chain offering puts Kalshi squarely in competition with Polymarket, the blockchain-native prediction platform that lets users bet on outcomes using the USDC stablecoin. Jupiter Exchange now features a front-end similar to Kalshi's, offering contracts on sports, politics, and cryptocurrencies. Like Polymarket, users can buy shares using USDC.

It's an interesting strategic pivot for Kalshi, which built its business as a regulated U.S. exchange while Polymarket operated in a grayer regulatory zone.

Massive Growth, Mixed Signals

Kalshi has been on a tear lately. The company's valuation reportedly jumped to $11 billion following a $1 billion funding round. According to Dune Analytics, the platform's total trading volume has surpassed $19 billion, with $5.8 billion recorded in November alone.

But it hasn't been all smooth sailing. Last week, a Nevada judge reversed an earlier court victory for Kalshi, ruling that contracts based on sporting event outcomes don't fall under Commodity Futures Trading Commission jurisdiction. That's a setback for the company's sports betting ambitions.

Price Action: At the time of writing, SOL was trading at $127.46, up 0.31% over the previous 24 hours.