Kalshi may introduce more crypto-related options, such as stablecoin deposits, in response to increasing volumes in prediction markets and the upcoming U.S. elections.
Kalshi and its CEO, Tarek Mansour, are moving forward confidently after a recent court ruling that effectively legalized electoral betting contracts in the U.S., enabling progress on their platform. In an article featuring Mansour, Fortune reported that the prediction market platform is set to support deposits in USD Coin (USDC).
Circle’s USD Coin boasts a $34 billion market capitalization, solidifying its position as the second-largest stablecoin, following Tether (USDT). This feature is expected to launch ahead of the U.S. presidential elections in less than two weeks. Kalshi previously ventured into cryptocurrency services by enabling bets on the future price of Ethereum, though all settlements are conducted in fiat currency.
Mansour hinted at a potential partnership with X, the social media platform owned by billionaire entrepreneur Elon Musk, who is a well-known supporter of Trump. Musk has shared election odds from Kalshi on his personal account.
Similarly, Musk has cited Polymarket’s content as interest in prediction markets continues to soar. A study from CoinGecko indicated that betting volumes surged by 713% in Q3 2024.
Kalshi aims to capture the U.S. user base and American capital flow, while Polymarket has taken a commanding lead in the prediction market space with a 99% market share and over $1 billion in election-related wagers just in September. Despite not servicing U.S. bettors, Polymarket has emerged as a predominant player in the industry with less than a quarter of the year left. The Polygon-based platform recently instituted new know-your-customer verification for its largest stakeholders.
Kalshi also encounters new competition from crypto-native platforms, which may lack the same U.S. court approvals as Mansour’s enterprise. Emerging crypto startups like SoulBound and Wintermute are poised to launch or provide support for a new era of on-chain prediction markets.
