Crypto stablecoin deposits coming to Kalshi’s markets

Kalshi may enable more crypto-related options such as stablecoin deposits due to increased volume in prediction markets and upcoming US elections.

Things are in full swing for Kalshi and CEO Tarek Mansour following the court victory against the Commodity Futures Trading Commission, which effectively legalized election-based betting contracts in the US. In a profile of Kalshi co-founder Mansour, Fortune explained that the results of the event were based on speculation. The website plans to add support for USD Coin (USDC) deposits.

Circle’s USD Coin has a market cap of $34 billion, making it the second largest stablecoin after Tether (USDT). This feature could arrive less than two weeks before the US presidential election. Kalshi first introduced crypto-related services by allowing bets on the future price of Ethereum, but the platform settles bets in fiat.

Mansour also talked about integration with social media network X, owned by billionaire Tesla and SpaceX entrepreneur Elon Musk. Musk, an open supporter of Trump, quoted Kalshi’s election odds through his personal account.

Musk similarly cited Polymarket’s posts as interest in prediction markets continues to grow. According to CoinGecko research, betting volumes increased by 713% in the third quarter of 2024.

Kalshi hopes to attract US users and American cash flow; Polymarket, on the other hand, dominated the prediction venues with 99% market share and over $1 billion in election-related bets in September alone. Despite not serving US punters, Polymarket was the clear market leader with less than a quarter of the year remaining. The Polygon-based protocol recently announced new know-your-customer checks for its largest stakers.

Kalshi also faces new competition from crypto-native providers, although other platforms may not have the same U.S. court approval as Mansour’s company. Crypto startups like SoulBound and Wintermute aim to launch or provide support for a new wave of on-chain prediction venues.