Galaxy Digital is considering partnerships with Polymarket and Kalshi.
Date: 2025-11-26 Author: Gabriel Deangelo Categories: BUSINESS
Galaxy Digital is in talks with Polymarket and Kalshi to act as a liquidity provider, according to founder and CEO Mike Novogratz in an interview with Bloomberg. He stated that the company is already conducting small experiments with market making in prediction markets, but is considering a larger-scale involvement to ensure stable liquidity.
Polymarket and Kalshi are actively seeking reliable trading partners, but they were previously too small to attract major Wall Street players. As the sector grows in popularity, interest from major financial firms is increasing. Jump Trading and AQR Capital Management are already among these participants. Market makers' participation helps maintain high trading volumes in key markets, as they are constantly ready to buy and sell yes and no contracts on events.
Market makers help reduce spreads and make markets more accessible for entry and exit. Polymarket and Kalshi operate on a peer-to-peer basis, meaning that a "Yes" contract can only be purchased if there is interest in the "No" contract. The participation of major market makers reduces volatility, making sharp price swings less likely.
Novogratz did not specify the current stage of Galaxy Digital's current experiments with prediction markets. For example, Kalshi already uses an internal market maker, Kalshi Trading, which, according to the company, does not have access to the platform's confidential information.
Large players' interest in prediction markets is not limited to Galaxy Digital. It was previously reported that data from Kalshi and Polymarket would be integrated into the updated Google Finance service, allowing a wider audience to track events on these platforms.
Thus, prediction markets continue to attract the attention of major financial institutions. With increased liquidity and the participation of market makers, platforms like Polymarket and Kalshi are becoming more stable and convenient for traders, opening up new opportunities for large-scale trading of event-based contracts.
Galaxy Digital's collaboration with forecasting platforms could be a significant step in developing this segment and attracting new participants from Wall Street.
