Prediction market platform Kalshi confirmed a $1 billion funding round, valuing the company at $22 billion. This highlights growing investor interest in event-based trading platforms.
Coatue led the Series F funding round, which included Sequoia Capital, Andreessen Horowitz, Paradigm, Morgan Stanley, and ARK Invest. Kalshi will use the new funds to grow its institutional trading services and improve its infrastructure for large financial firms.
Kalshi operates a regulated marketplace where users trade contracts based on real-world events such as elections, economic data, sports results, and weather. These contracts let traders and institutions hedge risks or bet on the chances of future events.
Kalshi said institutional trading on its platform jumped 800% in the past six months, with annualized trading volume topping $178 billion. Prediction markets are becoming increasingly popular in traditional finance as traders seek new ways to manage risk.
Kalshi’s rapid growth has also drawn the attention of regulators in several U.S. states. Officials in Nevada, New Jersey, and Illinois have questioned whether some event contracts are similar to unlicensed sports betting. Kalshi says it is regulated by the Commodity Futures Trading Commission at the federal level, not by state gambling authorities.
This latest funding round shows that prediction markets are moving from a niche crypto idea to a growing part of institutional finance.
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