Kalshi's $300M Fuel Global Expansion as Regulators Close In

Kalshi, a U.S. prediction market platform, has secured $300 million in funding at a $5 billion valuation, marking a significant milestone in its global expansion. The funding round, led by Sequoia Capital, Andreessen Horowitz, Paradigm, CapitalG, and Coinbase Ventures, underscores growing institutional confidence in the sector. The company now plans to expand its services to users in over 140 countries, a first for the platform that previously operated exclusively in the U.S. Prediction Market Kalshi Valued at $5B - CoinDesk^[1] Kalshi Raises $300M, Targets $5B Valuation and Global Growth^[2] The Invisible Wall: Why Canadians Can’t Trade Predictions on …^[9].

The investment comes as Kalshi's trading volume surges, with annualized trading volume projected to reach $50 billion in 2025, up from $300 million in 2024. The platform now commands over 60% of the global prediction market share, surpassing rival Polymarket, which recently raised $2 billion at a $9 billion valuation Prediction Market Kalshi Valued at $5B - CoinDesk^[1] Kalshi Raises $300 Million, Valuing Prediction Market Startup^[3] Kalshi Starts Global Expansion With New $300M Raise^[7]. Kalshi's growth has been driven by sports betting markets, which account for a significant portion of its volume, and its integration with platforms like Robinhood and Webull to enhance accessibility Prediction Market Kalshi Valued at $5B - CoinDesk^[1] .

Regulatory scrutiny remains a key challenge. While Kalshi cleared a federal hurdle with the U.S. Commodity Futures Trading Commission (CFTC) earlier this year, it now faces lawsuits from states like Massachusetts, which alleges its sports betting contracts violate local gambling laws. The company's CFTC-registered status has provided a competitive edge over Polymarket, which was barred from U.S. operations until recently Prediction Market Kalshi Valued at $5B - CoinDesk^[1] Kalshi’s Regulatory Edge Propels It Past Polymarket, Blockchain …^[4] Kalshi Starts Global Expansion With New $300M Raise^[7].

Kalshi's expansion strategy includes leveraging blockchain technology, with CEO Tarek Mansour emphasizing its role in building "new financial primitives" for the platform. The company already allows stablecoin deposits via partnerships like ZeroHash and is exploring tokenized positions and leveraged trading. This aligns with broader regulatory shifts in the U.S., including the Genius Act, which facilitates stablecoin issuance, and the CFTC's retreat from aggressive enforcement Robinhood Eyes Global Expansion of Prediction Markets After^[8] The Invisible Wall: Why Canadians Can’t Trade Predictions on …^[9].

Competitive dynamics highlight the sector's evolution. Polymarket, despite its $9 billion valuation, faces challenges in the U.S. market, having acquired a CFTC-licensed derivatives exchange to re-enter the country. Meanwhile, Kalshi's regulatory compliance and liquidity advantages have solidified its dominance, with Dune Analytics data showing it captured 62% of on-chain prediction market volume in early September 2025 Kalshi Starts Global Expansion With New $300M Raise^[7] Kalshi’s Regulatory Edge Propels It Past Polymarket, Blockchain …^[4].

The platform's global rollout excludes 38 jurisdictions, including Canada, France, Russia, and Singapore, due to legal restrictions. These exclusions reflect fragmented regulatory frameworks, with countries like China Hong Kong and China Macau also restricted. Kalshi's expansion into new markets is expected to accelerate adoption, particularly in regions with established betting cultures The Invisible Wall: Why Canadians Can’t Trade Predictions on …^[9] .

Investor enthusiasm extends beyond traditional funding, with Robinhood planning international expansion of its prediction markets product, leveraging Kalshi's infrastructure. This collaboration signals broader institutional acceptance of prediction markets as tools for risk hedging and sentiment analysis .

Kalshi's success underscores the potential of regulated prediction markets to bridge traditional finance and blockchain innovation. As the sector matures, regulatory clarity and technological integration will be critical in sustaining growth and addressing ethical concerns around speculative betting.