Galaxy Digital Eyes Prediction Markets, Holds Polymarket, Kalshi Talks
Galaxy Digital is in talks with prediction market platforms Polymarket and Kalshi about becoming a liquidity provider as on-chain betting on real-world events draws attention from retail and institutional traders.
Several Wall Street firms, including Jump Trading and Susquehanna, are already active in the prediction market ecosystem.
Galaxy Digital Holds Talks With Polymarket, Kalshi
Galaxy Digital CEO Mike Novogratz has revealed that the firm is in active discussions with Polymarket and Kalshi to provide liquidity for prediction markets. Galaxy Digital has been running small-scale market-making trials with plans to expand. The move indicates growing institutional interest in the prediction market sector, with Jump Trading also making markets on Kalshi.
Galaxy Digital primarily focuses on providing crypto infrastructure and services to institutional clients, and will act as a market maker on Kalshi and Polymarket, posting regular bids and offers to deepen trading. Novogratz revealed Galaxy is already experimenting with market making and prediction markets on a very small scale. The move could make Galaxy a key player in a market that features heavy participation from retail traders and financial firms.
Prediction Markets Generating Interest
Prediction markets were generally considered too niche to attract substantial interest, with Susquehanna International Group one of the few entities to publicly acknowledge its role as a market maker on Kalshi. However, some exchanges also run internal market-making entities to meet demand. Kalshi also runs a unit called Kalshi Trading that trades against customers. The company states that the desk has no access to non-public information generated by the platform.
Meanwhile, Polymarket has started live testing a US exchange this month and has quietly onboarded a limited group of users as it prepares for a relaunch in the US.
Jump Trading has also started market-making activities on Kalsh, while Cliff Asness, co-founder of AQR Capital Management, is contemplating moving into sports betting. However, there is backlash against prediction markets as well, with Melinda Roth, a law professor at Washington & Lee University, stating,
“This is a mess for so many reasons. We have people taking money they often don’t have and not investing in the stock market or retirement savings.”
Trump Family Doubles Down
Kalshi began offering markets tied to sports earlier this year, shortly after winning a legal case to allow election betting. State gambling regulators have opposed this move, arguing it breaks local laws. However, Kalshi argued that it offered the products under federal CFTC oversight, not local and state gambling rules.
Meanwhile, the Trump family has doubled down on prediction markets, with Donald Trump Jr. joining both Kalshi and Polymarket as an advisor. Trump Media & Technology Group had also held talks with Crypto.com before launching its own prediction platform, Truth Predict.
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