“This funding accelerates our long-term vision: building the next-generation financial exchange,” the prediction market said in announcing its Series G Thursday (Oct. 29). “An exchange that gives individuals, businesses, and institutions more direct ways to understand the world, act on their beliefs, and manage risk.”
Kalshi said it will use the funding to expand the exchange, increase access around the world and launch new products such as indices, single-stock perpetual futures and compute markets.
“Each expands the ways people can express a view or manage a specific exposure—from the direction of an equity benchmark to the future cost of computing power,” the announcement said. “We recently announced a partnership with S&P, where we’ll work together to build indices on prediction markets.”
The company noted that while prediction markets remain central to Kalshi’s vision, they laid the foundation for “a much broader exchange.”
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Kalshi says it now has more than $1 billion in non-sports annualized revenue and with its overall business’s annualized trading volume now surpasses $1 trillion. Upwards of 30 million Kalshi accounts have been created, with the company making up more than 75% of prediction market trading volume.
The company’s commodities business has generated more than $100 million in annualized trading fees in only three months, while crypto trading volume has come to $140 billion annualized and politics trading volume has reached more than $8 billion annualized.
“As more participants join, they bring liquidity that makes the exchange more useful for everyone,” Kalshi said. “That liquidity supports new markets, attracts new participants, and expands the range of products we can offer. This is how we’re building a diversified financial exchange with prediction markets at its foundation.”
Meanwhile, the predictions sector continues to find itself in the middle of a war between state and federal regulators. The latest skirmish is happening in Utah, where the Commodity Futures Trading Commission (CFTC) filed a lawsuit this week to prevent state enforcement aimed at stopping platforms such as Kalshi from doing business there.
As covered here Wednesday (Oct. 28), the CFTC said Utah had filed civil enforcement actions in state court against federally regulated markets and other businesses, arguing those actions obstruct Congress’ decision to preempt state law covering CFTC-registered exchanges.
Utah Attorney General Derek Brown outlined the state’s position in a declaration last week naming gambling as a public nuisance causing serious ongoing harm.
“The declaration addresses gambling broadly, rather than formally declaring prediction markets a separate category of nuisance. But the implication was clear,” PYMNTS wrote, as Brown mentioned gambling “grabbing” people “instantly through phones and online platforms.”
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