Crypto: Jump Trading Eyes Kalshi, Polymarket Stakes As Institutional...
Wall Street–style liquidity is reportedly moving into prediction markets, signaling a shift toward deeper markets, higher volumes and greater institutional participation.
Jump Trading, a Chicago-based quantitative trading company, is reportedly set to acquire minority stakes in prediction market platforms Polymarket and Kalshi, underscoring growing institutional interest in the rapidly expanding sector.
The equity stakes would be obtained in exchange for providing trading liquidity on both platforms, Bloomberg reported Monday, citing people familiar with the discussions.
While the report did not disclose specific ownership percentages, Bloomberg said Jump’s stake in Polymarket would scale based on the liquidity the company ultimately provides.
Founded more than two decades ago, Jump Trading has long been a major player in proprietary financial trading and has expanded aggressively into digital assets. It has been active as both a market maker and venture investor in crypto, backing blockchain infrastructure projects and exchanges through its affiliated investment arms.
Polymarket and Kalshi are the two largest prediction market platforms, each commanding multibillion-dollar valuations following recent funding rounds.
As previously reported by Cointelegraph, Polymarket raised $2 billion from NYSE parent Intercontinental Exchange, valuing the company at $9 billion. In early December, Kalshi secured $1 billion in funding at an $11 billion valuation.
While both platforms allow users to trade on the outcomes of real-world events, they operate under different models. Polymarket is a decentralized platform built on the Polygon blockchain that enables onchain settlement of prediction contracts, whereas Kalshi operates as a centralized, federally regulated exchange in the United States.
Related: Trump Jr. joins Polymarket board as prediction market eyes US comeback
Prediction markets gained mainstream attention after Polymarket’s event contracts accurately forecast the outcome of the 2024 US presidential election, highlighting the sector’s potential as a real-time information and risk-pricing tool. Industry analysts now estimate that prediction markets could generate trillions of dollars in annual trading volume by the end of the decade.
Source: CoinTelegraph
