Coinbase has partnered with Kalshi, a leading U.S. prediction market platform. The partnership plans to provide institutional-grade custody and settlement for USDC stablecoin transactions tied to event contracts. It also aims to enhance security, operational reliability, and transparency for users trading on real-world outcomes ranging from elections to inflation data.
Kalshi Integrates USDC Custody and Settlement
Kalshi selected Coinbase Custody to oversee all USDC flows, covering deposits, withdrawals, and real-time payouts for its event contract platform. By leveraging Coinbase’s enterprise-grade crypto custody infrastructure, Kalshi will protect user balances from operational risk, ensure strict regulatory compliance, and provide full transparency at every stage of the trading process.
Participants on Kalshi’s regulated exchange now transact and settle in USDC, a fully backed, dollar-pegged digital asset. This assures users that event contract outcomes are funded, cleared, and settled on a stable, non-volatile medium, unlike crypto assets, which are prone to price fluctuations. Deposits and payouts remain auditable and secure, allowing traders to focus on contract results rather than asset security.
USDC’s price and operational stability are particularly critical for prediction markets, as contract values and payouts must remain predictable and trustworthy, regardless of underlying crypto market volatility.
Event Trading Platforms Enhance Reliability
Kalshi operates under U.S. Commodity Futures Trading Commission (CFTC) oversight, making compliant custody and audited financial flows essential for market trust. The integration of Coinbase’s custody infrastructure delivers real-time settlement, transparent records, and user protections against custody failure or compromised transfers.
Prediction markets have seen accelerated growth in 2025, with more platforms reporting record participation and increasing contract volume. Kalshi’s latest valuation, boosted by its $185 million raise, puts it among the fastest-growing fintech and blockchain project categories in the U.S.
Both retail and institutional users have joined platforms to trade contracts on the outcomes of elections, economic data, and sports events. Secure, compliant stablecoin transactions are emerging as a key driver of this broader adoption.
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