Kalshi chooses Coinbase Custody to secure USDC reserves

A major partnership between Kalshi and Coinbase is set to strengthen the infrastructure behind event-based trading in the U.S. Kalshi, the largest regulated prediction market platform in the U.S., has chosen Coinbase Custody to hold the USDC used across its event contracts. The company announced the move on Nov. 13, stating it will provide traders with greater confidence in the stability and safety of the funds backing each market. Coinbase Custody is known for its cold storage solutions, segregated accounts, and compliance standards typically utilized by major institutions.

Kalshi partners with Coinbase Custody to enhance trading security

This partnership marks a significant step for Kalshi as it aims to solidify its position in the prediction market space. By collaborating with Coinbase Custody, Kalshi enhances the security of its financial infrastructure, which is essential for users who rely on the platform for trading various outcomes, including elections and economic indicators. The integration is expected to instill more trust among users, as they can be assured that their funds are well-protected.

Stability is crucial for prediction markets and user trust

In prediction markets, stability is paramount. Users need assurance that their deposited funds are secure, especially when engaging in trades linked to unpredictable events. Kalshi emphasized that this partnership brings event contracts closer to mainstream financial assets by combining its regulated exchange framework with Coinbase’s robust custody services. This move is poised to enhance the overall user experience, allowing traders to focus more on their strategies without worrying about the safety of their investments.

Kalshi experiences significant growth and increased market visibility

Kalshi has witnessed substantial growth in 2025, with recent funding rounds valuing the company at over $10 billion. This is a notable increase from a previous valuation of $5 billion just weeks prior, reflecting heightened investor interest in the prediction market sector. Earlier in the year, Kalshi raised $185 million at a $2 billion valuation, bringing its total funding to $415 million. This surge in support has also been mirrored by competitors like Polymarket, indicating a broader momentum in event-based trading.

USDC serves as a key settlement asset for Kalshi's platform

Another critical aspect of Kalshi’s operations is the use of USD Coin (USDC) as the primary settlement asset on its platform. USDC is recognized for its quick settlement times and stable value, making it ideal for real-time trading scenarios. With Coinbase now safeguarding these reserves, Kalshi aims to provide traders with a more secure trading environment. This partnership comes shortly after Kalshi integrated with Coinbase’s layer-2 network Base, which has already reduced barriers for new users by facilitating faster and more affordable USDC deposits. As Kalshi continues to build on this foundation, the platform is poised for long-term stability and growth in the prediction market landscape.