Kalshi Taps Coinbase to Manage USDC Deposits on Its Prediction Market Platform

Kalshi has partnered with Coinbase to provide USDC custody and settlement on the platform. This gives users the type of financial system used by traditional markets.

Kalshi Picks Coinbase Custody for USDC Settlement

In a recent blog post, the exchange announced that Kalshi has selected its Custody platform to secure the USDC used in its trading platform. According to the exchange, all USDC flows for the firm will be managed by its institutional custody arm.

This will keep user deposits, withdrawals, and other transactions fully protected under a safe framework. It will also allow Kalshi to tap into Coinbase’s liquidity support and custody safeguards. These two tools are essential to any platform dealing in large volumes of stablecoin transactions.

Prediction markets allow participants to trade outcomes tied to real-world events. These types of platforms only work when traders trust that the money they are trading with is stable.

USDC provides price stability to manage such markets, while Coinbase brings with it a system that institutions demand. These would give Kalshi the foundation it needs to boost event trading.

Kalshi’s move comes after the US SEC announced last month that state-chartered trust companies can now serve as qualified custodians for crypto assets. However, this is provided they satisfy specific checks. 

Advisers under the older law had to use qualified custodians. Usually, these custodians were either national banks or trust companies recognized by the federal government.

Prediction Markets Sees High Participation

In 2025, more investors joined prediction markets. For instance, DraftKings reported gains of over 40% this year. Robinhood’s market performance also increased by more than 420%.

Kalshi also received funding offers that valued the company at over $10 billion. This is an increase from the $5 billion it had earlier in the month. In June, Kalshi raised $185 million at a $2 billion valuation. This brought its total funding raised to $415 million.

Meanwhile, new platforms are coming up. Last month, the Trump Media & Technology Group partnered with Crypto.com to launch Truth Predict. The new platform will let users place contracts on political and economic, amongst other outcomes. The move places Trump Media as a direct rival to major platforms.

Most recently, in September, Poylmarket received a CFTC no-action letter that lets it operate legally in the United States, This is another sign of positive change toward the industry.