Overview
- Galaxy Digital has held discussions to provide two-way quotes on Polymarket and Kalshi, with CEO Mike Novogratz saying the firm is experimenting with market making and could expand its role.
- Professional liquidity could narrow spreads and reduce price gaps between venues, addressing current divergences that persist with few active arbitrageurs.
- Polymarket and Kalshi account for roughly 97% of global prediction-market volume, concentrating liquidity where institutional firms are now engaging.
- Other trading desks have begun participating, with Susquehanna active on Kalshi and Jump Trading recently starting to provide liquidity there.
- Recent regulatory and growth milestones underpin the shift, including Kalshi’s CFTC designation and court approvals, Polymarket’s QCEX acquisition restoring U.S. access, major funding rounds, and Google integrating real-time odds into Search and Finance.