Kalshi confirms $1 billion raise at $22 billion valuation amid prediction market boom

Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Kalshi confirms $1 billion raise at $22 billion valuation amid prediction market boom Institutional trading volume surged 800% over the past six months on the platform, while annualized trading activity reached $178 billion despite growing regulatory scrutiny. By Krisztian Sandor | Edited by Stephen Alpher May 7, 2026, 2:43 p.m. 2 min read Make preferred on Kalshi co-founders Luana Lopes Lara and Tarek Mansour (Kalshi) What to know : Kalshi confirmed a weeks-old report that it raised $1 billion in an investment round led by Coatue, valuing the firm at $22 billion. Prediction markets like Klashi and Polymarket are gaining traction as trading and hedging tools on Wall Street. Kalshi's institutional trading volume surged 800% over six months, while annualized trading activity more than tripled to $178 billion during the same period. Prediction market platform Kalshi said it raised $1 billion in fresh funding at a $22 billion valuation, as institutional investors increasingly turn to event contracts for trading and hedging. The Series F round was led by Coatue and included Sequoia Capital, Andreessen Horowitz (a16z), Paradigm, IVP, Morgan Stanley and ARK Invest, according to a Thursday press release . The news confirmed a Bloomberg report in March about the investment round and valuation. The firm said it plans to use the capital to expand institutional services, including block trading tools, broker integrations and new risk products aimed at asset managers and insurance firms. The fundraising comes as prediction markets have gained momentum in crypto and traditional finance alike as firms look for alternative ways to gauge probabilities and manage risk. Hedge funds and proprietary trading firms increasingly use event contracts alongside conventional derivatives to hedge exposure or express macroeconomic views. The company operates a regulated marketplace where users trade contracts tied to real-world outcomes, from elections and economic data to sports and weather events. Traders buy contracts that pay out if a specific event occurs, turning forecasts into tradable markets. Kalshi said institutional trading volume on the platform jumped 800% over the past six months, while annualized trading volume more than tripled to $178 billion during the same period. Kalshi's reported trading volume (Kalshi) Amid staggering growth, prediction markets have also drawn growing scrutiny from U.S. regulators and state authorities. Nevada, New Jersey, Illinois and several other states have issued cease-and-desist orders or launched legal challenges against Kalshi, arguing that some event contracts resemble unlicensed sports betting products. Kalshi has pushed back, saying its federally regulated exchange falls under the oversight of the Commodity Futures Trading Commission (CFTC) rather than state gambling regulators. Kalshi Prediction Markets More For You Aave to overhaul collateral and listing standards after KelpDAO exploit By Oliver Knight | Edited by Stephen Alpher 16 minutes ago The lending giant is expanding its asset listing criteria beyond financial risk to include cybersecurity and architecture, and wants the rest of DeFi to follow. What to know : Aave will assess all future collateral assets on cybersecurity, interoperability, and technical architecture — not just price volatility — and will publish a minimum-standards playbook for issuers seeking to list on the protocol. The changes follow April's KelpDAO bridge exploit, in which an attacker minted $293 million in unbacked rsETH... Read full story Latest Crypto News Aave to overhaul collateral and listing standards after KelpDAO exploit 16 minutes ago Bitcoin tests Bollinger Bands breakout as creator flips bullish on BTC 35 minutes ago 'JaredfromSubway' bot front runs Vitalik Buterin's $4 token swap with $1 million in volume 45 minutes ago Consensus Miami Day 3: Real-time coverage and highlights from on the ground 1 hour ago CoinDesk 20 performance update: Bitcoin Cash (BCH) drops 1.2%, leading index lower 1 hour ago Bitwise enters tokenization in takeover of Superstate’s $267 million 'carry fund' 1 hour ago Top Stories Bitcoin treasury firms outline $3 trillion opportunity in BTC-backed digital credit at Consensus 2 hours ago Safety first: Why Adam Back says Bitcoin is winning the 'DeFi security war' 4 hours ago Dogecoin slides 4%, bitcoin rally pauses as Iran ceasefire optimism lifts equities 10 hours ago U.S. Bitcoin Reserve update coming in 'next few weeks," White House adviser says 16 hours ago Morgan Stanley brings crypto trading with lower fees than rivals May 6, 2026 Crypto derivatives have converged with Wall Street. Equity perps could soon prove it. May 6, 2026