Polymarket Plans To Use In-house Market Maker To Trade Against...

The company has approached traders, including sports bettors, about joining the effort as it expands in the US and rival Kalshi faces scrutiny over similar practices.

Polymarket is recruiting staff for an internal market-making team that may trade against users on its platform.

The company has recently approached traders — including sports bettors — about joining the group, Bloomberg reported on Thursday, citing people familiar with the discussions.

The initiative comes as Polymarket expands its US presence after resolving regulatory issues stemming from a 2022 case, when it paid a $1.4 million penalty to the Commodity Futures Trading Commission.

Kalshi, a Polymarket competitor, already operates an internal unit known as Kalshi Trading, which places bids on its exchange to help support liquidity. The arrangement has drawn criticism from some users, and a proposed class-action lawsuit filed last month alleged that the desk sets betting lines that disadvantage customers.

Both Polymarket and Kalshi have also sought external participants to supply liquidity on their platforms. On Kalshi, companies such as Susquehanna International Group have taken on market-making roles.

Cointelegraph reached out to Polymarket for comment but had not received a response at time of publication.

Related: Polymarket is opening US app to waitlisted users after CFTC green light

Prediction markets such as Polymarket and Kalshi have experienced significant growth in recent years, with both companies securing new partnerships and reaching high private-market valuations as the sector expands.

The platforms enable users to bet on a wide range of events, from sports to predicting the next day’s weather in New York City.

Source: CoinTelegraph