Catenaa, Saturday, November 29, 2025-Galaxy Digital is in talks with prediction market platforms Polymarket and Kalshi to become a liquidity provider, aiming to deepen trading in real-world event markets.
The firm has begun small-scale market-making experiments, with plans to expand its presence if early tests succeed.
Prediction markets allow users to buy binary contracts tied to outcomes such as elections, sports results, and economic events, with prices reflecting the crowd’s implied probability.
Platforms like Polymarket and Kalshi operate largely peer-to-peer order books, making liquidity providers essential for smooth trading and preventing sharp price swings.
The sector has seen rapid growth, driven by traders seeking speculative outlets and informal polling insights.
Polymarket recently began live testing its US exchange with a limited user group, preparing for a broader domestic relaunch. Kalshi operates a dedicated market-making desk that trades against customer positions while maintaining separation from non-public data.
Regulatory oversight remains uneven.
Some US states classify prediction markets under gambling laws, but federally, the Commodity Futures Trading Commission has not acted against platforms operating peer-to-peer contracts.
Increased liquidity from institutional participants like Galaxy could expand market depth and encourage higher-volume trading.
Tech platforms are supporting sector growth.
Google Finance announced plans to display live Polymarket and Kalshi data, increasing visibility for mainstream users.
