Kalshi and Coinbase Custody Establish Secure Model for Prediction Markets

Kalshi, the largest regulated prediction market in the U.S., has selected Coinbase Custody to secure USDC deposits and payouts for event-based contracts, marking a significant step in enhancing security and compliance for traders according to the announcement. The partnership, announced on November 13, 2025, leverages Coinbase Custody's institutional-grade infrastructure to safeguard the stablecoin, which underpins Kalshi's event-driven trading platform. This move aligns with Coinbase's broader mission to expand onchain economic freedom while reinforcing Kalshi's position as a trusted venue for real-world outcome trading.

The partnership addresses a critical need for stability in prediction markets, where participants rely on predictable settlement mechanisms. USDC, a fully backed digital dollar, serves as the primary settlement asset on Kalshi's platform, enabling fast, transparent, and price-stable transactions.

By integrating Coinbase Custody, which offers cold storage, segregated accounts, and compliance frameworks used by global enterprises, Kalshi ensures that user funds are protected against operational risks while remaining auditable. This institutional-grade custody solution strengthens market confidence, particularly for high-profile contracts tied to elections, economic indicators, and sports events.

The collaboration also underscores Kalshi's rapid growth in 2025. Earlier in the year, the company secured a $10 billion valuation, doubling from a $5 billion round in October, and expanded its reach through integrations with Google Finance, which now displays real-time odds from Kalshi and rival Polymarket. These developments highlight the growing mainstream acceptance of prediction markets as financial tools, with Kalshi positioning itself as a bridge between traditional finance and crypto innovation.

Coinbase Custody's role extends beyond security; it also provides liquidity and operational efficiency, enabling seamless transactions for Kalshi users. The partnership follows a previous integration with Coinbase's layer-2 network, Base, which reduced transaction costs and improved accessibility for new users. Together, these moves reinforce Kalshi's infrastructure to support high-volume trading while adhering to U.S. regulatory standards.

The partnership's implications extend beyond Kalshi. As digital assets increasingly intersect with regulated financial products, the model of combining stablecoin-backed custody with compliant marketplaces may set a precedent for other platforms. For now, Kalshi users benefit from a secure, transparent environment where they can trade on real-world events with confidence, knowing their assets are protected by institutional-grade safeguards.