- Investment manager Galaxy Digital is in talks with prediction market leaders Kalshi and Polymarket to become a market maker and provide liquidity.
- Galaxy Digital CEO Mike Novogratz confirmed the firm is “small-scale experimenting” and plans to expand its role in event-based trading as interest grows.
- Both platforms are regulated and offer binary contracts on outcomes like elections and sports, and have grown significantly, potentially looking at valuations of over US$10 billion each.
Investment manager Galaxy Digital is in talks with leading prediction markets Kalshi and Polymarket to provide liquidity to these platforms.
According to a report from Bloomberg, the potential partnerships come as interest in event-based trading grows among both retail traders and Wall Street firms.
Mike Novogratz, chief executive of Galaxy Digital, said the firm is “doing some small-scale experimenting with market-making on prediction markets” and expects to expand its role over time.
Galaxy, which has traditionally focused on institutional crypto infrastructure, would act as a market maker on these exchanges, posting regular bids and offers to deepen liquidity.
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The Rise of Prediction Markets
Prediction markets offer binary contracts on outcomes such as elections, sports events and other real-world scenarios. Both platforms are regulated, though Kalshi has been regulated by the CFTC as a Designated Contract Market (DCM) since 2020. Polymarket just recently received the green light from the CFTC to move operations in the US.
Unlike traditional sportsbooks that take the opposite side of customer bets, platforms like Polymarket and Kalshi mostly operate on a peer-to-peer model, matching traders who take “yes” and “no” positions against each other.
Both platforms have made major developments throughout 2025 and are on track to double their valuations by dozens of billions of dollars.
Notably, Google recently integrated real-time prediction data from both Kalshi and Polymarket to enhance Google Search and Google Finance.
Practically anything can be a market on platforms like Polymarket, even the most absurd wagers, but that’s basically how it works. For instance, there’s currently an open market for “Will Jesus Return in 2025?” or “How long will Trump and Mandani shake hands?”
A recent study even suggested that as much as 25% of the total trading volume on the platform might just be fictitious wash trades.
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