Kalshi vs Polymarket: Regulated USD exchange vs onchain market
Kalshi is a CFTC-regulated Designated Contract Market in New York City, founded in 2018, where traders buy Yes or No event contracts with cash balances that settle in US dollars. Polymarket, founded by Shayne Coplan in 2020, runs its international platform on Polygon. Collateral there is pUSD, a token backed by USDC, and positions are ERC-1155 tokens held in the trader's own wallet.
Custody is the clearest split. Kalshi holds cash centrally, requires full KYC and offers no on-chain withdrawals. Polymarket's international product is non-custodial, so losing a private key can mean losing access to funds. Resolution differs too: Kalshi relies on official government and industry statistics, while Polymarket uses the UMA Optimistic Oracle, where disputes can delay or change settlement. Then there is access. Kalshi is available in the US. Polymarket's international site blocks US residents and restricts the United Kingdom, France, Germany and Japan, while US trading runs through a separate CFTC-regulated venue, QCX LLC d/b/a Polymarket US.
Quick verdict
The deciding difference is custody and regulation. Kalshi is a federally regulated, custodial exchange with dollar balances and more than $2 billion in weekly volume across major events in May 2026. Polymarket's international platform keeps funds onchain in the user's wallet, which removes exchange custody but adds smart-contract and key-management risk; a June 2026 frontend compromise involved $3 million.
Choose Kalshi if US residency, dollar settlement and federal oversight come first. It has REST, WebSocket and FIX APIs, tick sizes down to $0.0001, subaccount isolation and perpetual futures on crypto and the US 500 index. The trade-off is full identity verification, with no on-chain withdrawals and regulatory exclusions such as the 2026 trading ban on US Senate staff.
Choose Polymarket if trading from a supported country outside the US with a self-custodied wallet matters more than a dollar account. Its topic list is wider and it pays liquidity rewards. Its editorial fee rating is 3 against Kalshi's 4, thin liquidity in some markets can raise entry and exit costs, and UMA disputes can delay settlement.
| Feature | ||
|---|---|---|
| Ratings | ||
| Our score | 4.3/5 | 4.0/5 |
| User rating | No reviews yet | No reviews yet |
| Market selection | 4.5 | 4.5 |
| Liquidity | 4.5 | 4.5 |
| Fees | 4.0 | 3.0 |
| Resolution quality | 4.5 | 4.0 |
| Ease of use | 4.0 | 4.0 |
| Specs | ||
| Market types | Politics, Sports, Crypto, Economics, Culture, Weather | Politics, Sports, Crypto, Economics, Culture |
| Settles in | USD | pUSD, a crypto collateral token backed by USDC |
| Chains | Other | Polygon |
| Trading fees | Model fee rounded to $0.000001 precision with balance rounding fees | Not disclosed |
| Resolution source | Official government and industry statistics, primary source reporting | UMA Optimistic Oracle |
| Available in the US | Yes | No |
| KYC required | Yes | Not disclosed |
| Regulated venue | Yes | No |
| Market topics | Elections, Macroeconomics, Sports, Cryptocurrency, Weather, Financial Indices | Politics, Elections, Sports, Crypto, Finance, Geopolitics, Technology, Culture, Weather, Economics |
| Liquidity rewards | Not disclosed | Yes |
| Company | ||
| Founded | 2018 | 2020 |
| Headquarters | United States | United States |
| Investors | Baillie Gifford, Layer Global, TCV, Coatue +9 | 1789 Capital, Intercontinental Exchange, Founders Fund, General Catalyst +26 |
| Strengths and weaknesses | ||
| Pros |
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| Cons |
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| Best for | US residents wanting regulated event contracts, Quantitative traders using FIX and REST APIs, Sports bettors preferring central orderbook pricing | Event probability traders, Onchain prediction market users, Politics and sports markets |
Highlighted cells show the stronger value in each row. Data comes from each provider's site and public sources; check details before you sign up.
FAQ
Which one works in the US, Kalshi or Polymarket?
Kalshi works for US residents as a CFTC-regulated Designated Contract Market. Polymarket's international platform blocks US residents, and US trading runs through Polymarket US, operated by QCX LLC under its own CFTC license.
Is Kalshi cheaper than Polymarket?
Kalshi has the higher editorial fee rating, 4 out of 5 against Polymarket's 3. Kalshi charges a model fee rounded to $0.000001 precision plus balance rounding fees.
Do Kalshi and Polymarket hold user funds?
Kalshi does, and Polymarket's international platform does not. Kalshi keeps cash balances centrally with no on-chain withdrawals, while Polymarket positions and pUSD collateral stay in the user's wallet.
How are markets resolved on Kalshi and Polymarket?
Kalshi resolves contracts from official government and industry statistics and primary source reporting. Polymarket uses UMA's Optimistic Oracle, which accepts a proposed outcome, allows challenges and sends disputes to UMA.
Has Polymarket had a security incident?
Yes. A June 2026 frontend compromise at Polymarket involved $3 million.