Kalshi's In-House Research: A Catalyst for Market Transparency and Investor Trust

Kalshi, the first federally regulated prediction market in the U.S., has emerged as a transformative force in financial innovation. By embedding in-house research into its operational DNA, the platform is redefining how markets aggregate information, foster transparency, and build trust. In 2025, Kalshi's strategic pivot toward research-driven governance and regulatory alignment has not only solidified its position as a leader in event-based trading but also demonstrated how prediction markets can serve as a mirror for public sentiment and institutional confidence.

The Strategic Shift: Research as a Foundation for Transparency

Kalshi's in-house research arm, launched in 2025, is more than a corporate initiative-it's a deliberate effort to democratize access to data and reinforce the legitimacy of prediction markets. According to a report by , Kalshi partnered with Axis Research to conduct a 2025 study revealing that 79% of Americans favor federal oversight of prediction markets by financial experts rather than state gaming commissions. This sentiment underscores a critical shift: prediction markets are increasingly viewed as financial tools, not gambling instruments.

The study further notes that 89% of respondents consider investing in market outcomes a form of financial investment, a framing that aligns prediction markets with traditional derivatives trading.

Kalshi's research also highlights public concerns about regulatory fragmentation. With 82% of participants opposing a patchwork of 50 state regulations, the platform has positioned itself as an advocate for a unified federal framework. This aligns with its regulatory status as a Designated Contract Market (DCM) under the Commodity Futures Trading Commission (CFTC), a designation that ensures transparency, integrity, and security in its operations. By leveraging in-house research to inform policy debates, Kalshi is not only defending its own model but also pushing for a regulatory environment that scales with its ambitions.

Operational Model: Technology, Partnerships, and Real-Time Data

Kalshi's operational model has evolved to prioritize technological innovation and strategic partnerships. In 2025, the platform integrated with Pyth Network to deliver real-time prediction market data onchain, enabling institutional-grade event data to reach a broader audience. This move bridges the gap between decentralized finance (DeFi) and traditional markets, offering a hybrid model that appeals to both retail and institutional investors.

The platform's partnerships with major players like Robinhood, Coinbase, and the National Hockey League (NHL) further amplify its credibility according to Alpha Partners. These collaborations are not just about brand recognition-they signal a broader acceptance of prediction markets as tools for aggregating diverse information. For instance, Kalshi's ability to accurately predict the outcome of the New York City Mayoral election in 2025 reinforced its reputation as a reliable barometer of public opinion. Such milestones are critical for investor trust, as they demonstrate the platform's utility beyond speculative trading.

Investor Trust: Metrics, Funding, and Market Reception

Kalshi's growing investor trust is reflected in its financial metrics and market reception. The company raised $1 billion in a 2025 funding round led by Paradigm, with Sequoia Capital and Andreessen Horowitz also participating, valuing it at $11 billion. This funding surge follows a previous valuation of $12 billion, as reported by Bloomberg, driven by strong institutional and retail investor confidence in its regulatory credibility and growth trajectory.

The platform's user base has grown 50 times year-over-year, while trading volume has surged 100 times during the same period. These figures are not just impressive-they are indicative of a market that values transparency and real-time data. Kalshi's weekly trading volumes now exceed $1 billion, a testament to its ability to attract liquidity and sustain high participation.

Regulatory Resilience and Future Implications

Despite early legal challenges, Kalshi has navigated regulatory scrutiny with resilience. Recent court decisions have been favorable, diminishing tensions in the predictive market space. This regulatory clarity, combined with its CFTC oversight, has created a flywheel effect: as trust grows, so does participation, which in turn attracts more investors and partners.

Looking ahead, Kalshi's in-house research and operational model position it to expand into international markets. The company's advocacy for federal regulation and its demonstrated ability to aggregate information more effectively than traditional Wall Street institutions suggest a future where prediction markets play a central role in financial ecosystems. For investors, this means Kalshi is not just a speculative bet-it's a foundational asset in the evolution of transparent, data-driven markets.

Conclusion

Kalshi's foray into in-house research is a masterclass in aligning innovation with institutional legitimacy. By prioritizing transparency, leveraging real-time data, and advocating for federal regulation, the platform has transformed prediction markets from niche curiosities into mainstream financial tools. As the company continues to scale, its strategic model offers a blueprint for how trust is built in the 21st-century market landscape. For investors, the message is clear: Kalshi isn't just predicting the future-it's shaping it.