Crypto Biz: Exchanges Place Their Bets On Prediction Markets

Prediction markets are moving into crypto’s mainstream as Crypto.com’s in-house market maker raises fairness questions and Coinbase doubles down on growth.

Prediction markets have emerged as one of the cryptocurrency sector’s most consequential, if not contested, frontiers. Once the domain of niche platforms, they are now attracting serious attention from major exchanges, venture capital and even traditional financial institutions.

As prediction markets move closer to the core of crypto’s business model, Crypto.com has sparked questions around fairness and market structure after seeking to hire a quantitative trader for an in-house market-making unit that would buy and sell contracts alongside other traders.

Meanwhile, Coinbase has signaled a longer-term bet on regulated prediction markets with its acquisition of The Clearing Company, an onchain prediction market startup backed by a team with experience at Kalshi and Polymarket.

Elsewhere, JPMorgan Chase’s reported exploration of crypto trading for institutional clients underscores how digital assets continue to seep into traditional finance, even as crypto-native companies like DWF Labs hedge their exposure by branching into physical commodities.

Crypto.com has become the latest cryptocurrency exchange to move into prediction markets, though a recent hiring effort has raised questions about market structure and potential conflicts of interest.

According to Bloomberg, Crypto.com is recruiting for a quantitative trader role tied to an internal market-making desk that would buy and sell prediction contracts alongside other traders. The position is reportedly focused on providing liquidity across prediction market outcomes.

A Crypto.com spokesperson did not dispute the report but said the initiative is designed to improve market efficiency by increasing competition and liquidity for users. The company emphasized that its internal market maker operates under the same rules as external participants.

The development highlights the growing interest among centralized exchanges in prediction markets, even as questions persist around governance, transparency and fair access in these emerging trading venues.

Coinbase is deepening its push into prediction markets with the acquisition of The Clearing Company, an onchain prediction market startup backed by executives with experience at Polymarket and Kalshi.

Source: CoinTelegraph