Kalshi is poised to enhance its offerings with crypto-related options, including stablecoin deposits, amid a notable increase in prediction market activity and the upcoming U.S. elections.
Kalshi, led by CEO Tarek Mansour, is advancing following a significant court ruling that legitimizes electoral betting contracts in the United States. The platform is set to introduce support for USD Coin (USDC), expanding its market presence just ahead of the presidential elections.
Circle’s USD Coin, with a market capitalization of $34 billion, is the second-largest stablecoin after Tether (USDT). This new feature is expected to be launched within two weeks of the U.S. elections. Kalshi initially ventured into cryptocurrency services by allowing wagers on Ethereum’s price, though settlements are conducted in fiat currency.
Mansour has hinted at a potential partnership with a major social media platform, known for its high-profile backing from influential figures. This rich integration comes as interest in prediction markets grows, with significant mentions by prominent personalities concerning election odds provided by Kalshi.
Additionally, a recent study highlighted that betting volumes surged by 713% in Q3 2024, reflecting a rising trend in prediction market participation. Kalshi aims to engage U.S. users and capitalize on domestic financial flows, positioning itself strategically against rivals like Polymarket, which holds a staggering 99% market share in prediction venues and recorded over $1 billion in election-related bets in September.
As Kalshi continues to innovate, it must also navigate competition from emerging crypto-native players. Startups like SoulBound and Wintermute are entering the prediction market ecosystem, potentially reshaping the landscape, although they lack the legal backing that Kalshi has secured.
