Paradigm leads Kalshi's $185 million investment, with valuation expected to reach $2 billion

From political elections, economic trends to extraterrestrial issues, the prediction market is rapidly rising as a new hotspot in the crypto field. The US compliant platform Kalshi and decentralized representative Polymarket have recently completed financing rounds of $185 million and $200 million respectively, successfully attracting the attention of well-known institutions such as Paradigm, Founders Fund, and Sequoia Capital. The prediction market platform Kalshi announced yesterday the completion of a $185 million financing round, with a valuation reaching $2 billion, led by the famous crypto venture capital firm Paradigm, with participation from institutions like Sequoia Capital and Multicoin Capital. A few days ago, its competitor Polymarket had just released news of completing a new round of financing of $200 million, with a valuation of $1 billion, led by Founders Fund of Silicon Valley legendary investor Peter Thiel. These two investment rounds not only show investors' strong interest in the prediction market but also herald that such platforms will move from niche betting to mainstream capital markets. Kalshi CEO Tarek Mansour stated: "This round of funding will be used to expand the technical team and enhance the trading experience, and we have already completed data integration with mainstream brokers like Robinhood and Webull." Paradigm founder Matt Huang emphasized: "The prediction market reminds me of cryptocurrencies ten years ago, an emerging asset class moving towards a scale of trillions of dollars." Looking at the biggest difference between the two platforms, it is not difficult to see the choice of regulatory strategy. Founded in 2018, Kalshi is currently the only prediction market approved by the US Commodity Futures Trading Commission (CFTC), a federally compliant platform, and has in May 2025 escaped the regulatory controversy of political prediction contracts, becoming the primary example of potential legalization of political predictions in the United States. In contrast, Polymarket adopts a decentralized design, but US users cannot use the product as it has not been approved by the CFTC. Nevertheless, the platform's user base continues to grow, expanding steadily in the global market with real-time and controversial topics, low participation barriers, and an active community. Coinciding with last year's US presidential election, both Kalshi and Polymarket saw explosive user growth before the election, conducting the first test of the prediction market's ability to reflect the true election situation. Currently, Kalshi's betting categories cover politics, economics, weather, cryptocurrencies, etc., with sports contracts accounting for 79% of trading volume. Polymarket is known for its diverse topics, ranging from election predictions to stock price fluctuations, and even theological or mysterious topics. These markets are also viewed by some financial or political institutions as alternatives to traditional polls and analysis, providing more accurate result predictions for data teams. Looking at the recent financing news of Polymarket and Kalshi, it is not difficult to see that the prediction market is no longer just a betting platform, but has the potential to become a convergence point for public sentiment. In the coming years, regulatory policies will determine which players can survive long-term and which can only continue to operate on the margins. As institutional capital continues to enter and user habits gradually form, decentralized prediction markets may perhaps forge a more accessible path to the real world compared to the obscure DeFi. Tokenized stocks have become a battleground, with San Francisco-based fintech startup Dinari becoming the first tokenized equity platform registered as a broker-dealer in the US, planning to officially launch in the US market in the coming months.

Toggle

SEC Approves First Tokenized Stock Platform

Dinari is a San Francisco-based fintech startup focused on tokenizing US stocks and introducing blockchain trading. According to Reuters, Dinari has become the first tokenized equity platform to obtain broker-dealer registration in the US, meaning it can legally provide blockchain-based stock trading services within the United States.

Its core product is tokenized stocks called dShares, which represent ownership of actual stocks and are backed 1:1 by real assets. Dinari has received permission from the US Securities and Exchange Commission (SEC) and plans to officially launch in the US market in the coming months.

Dinari Adopts B2B Model

Unlike traditional brokers like Charles Schwab or Robinhood, Dinari adopts a B2B model, integrating its trading interface into other platforms rather than directly facing end users. Its tokenized stocks are currently available outside the US through platforms like Coinbase's Base blockchain, with plans to expand to the US domestic market.

Dinari stated that its broker-dealer entity will begin operations next quarter. CEO Gabriel Otte said Dinari has reached agreements with multiple companies but declined to disclose specific names.

Tokenized Stocks Become Battleground, Coinbase Also Actively Competing

Currently, tokenized stocks are not yet traded in the US, but several companies are attempting this concept. Kraken last month stated it will launch xStocks, US stock Tokens to be issued in specific markets outside the US.

Cryptocurrency exchange Coinbase is also seeking SEC approval to offer "tokenized stocks" to its customers.

Motley Fool analyst Travis Hoium suggests that tokenized stocks could change investment models for public and private companies, enabling 24/7 trading, improving trading efficiency, and lowering participation barriers.

Bitwise CEO Hunter Horsley believes tokenization can create more inclusive capital markets, expanding US public market participation to more small and medium enterprises, promoting financial democratization.

However, critics argue that many issues need to be resolved before tokenized stocks can be widely traded. The World Economic Forum noted in a report last month that insufficient secondary market liquidity and lack of clear global standards are two major challenges facing tokenized stock applications.