Crypto stablecoin deposits coming to Kalshi’s markets

Kalshi could enable more crypto-related options like stablecoin deposits amid a surge in volume for prediction markets and the approaching U.S. elections.

It’s full steam ahead for Kalshi and its CEO, Tarek Mansour, following a court victory over the Commodity Futures Trading Commission that effectively legalized electoral betting contracts in the U.S. In a profile of Mansour, Kalshi’s co-founder, Fortune revealed that the event outcome speculating website plans to add support for USD Coin (USDC) deposits.

Circle’s USD Coin has a $34 billion market cap, making it the second-largest stablecoin after Tether (USDT). The feature could arrive before the U.S. presidential elections in under two weeks. Kalshi first introduced crypto-tied services by allowing bets on Ethereum’s future price, but the platform settles wagers in fiat.

Mansour also teased an integration with X, the social media network owned by billionaire Tesla and SpaceX entrepreneur Elon Musk. Musk, a public Trump supporter, has quoted election odds from Kalshi via his personal account.

Musk has similarly referenced Polymarket’s posts as interest in prediction markets continues to climb. According to a CoinGecko study, betting volumes skyrocketed 713% in Q3 2024.

Kalshi hopes to attract U.S. users and American cash flow, while Polymarket dominated prediction venues with 99% market share and over $1 billion in election-related bets during September alone. Polymarket was the clear market leader with less than a quarter of the year remaining, despite not catering to U.S. punters. The Polygon-based protocol recently announced fresh know-your-customer checks on its biggest 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 intend to launch or provide backing for a new wave of on-chain prediction venues.