Galaxy Digital, the crypto-focused financial services firm led by Mike Novogratz, is in active discussions to provide liquidity for the prediction-market platforms Polymarket and Kalshi. This potential move would extend Galaxy’s institutional market-making business into one of the fastest-growing segments of crypto-native trading.
Institutional Interest Reaches Prediction Markets
The talks underscore rising institutional attention on prediction markets, platforms that allow traders to speculate on real-world outcomes, from elections and economic data to sporting events. Liquidity providers play a critical role in this ecosystem by placing regular bids and offers, ensuring that traders always have counterparties and that markets remain balanced.
Polymarket and Kalshi Gain Momentum
Polymarket and Kalshi dominate the sector with a combined $42.4 billion in cumulative volume.
- •Polymarket operates as a decentralized platform, attracting a crypto-native user base.
- •Kalshi, by contrast, is regulated by the CFTC, offering event contracts that more closely mirror traditional financial instruments.
Both platforms have seen heightened activity as prediction markets gain mainstream visibility through media coverage and partnerships with major financial institutions.
Galaxy Digital’s Expanding Role
Galaxy has already experimented with small-scale market-making on these platforms and is now exploring ways to significantly deepen its involvement. The firm has long provided liquidity services in the broader crypto market, notably for Goldman Sachs’ Bitcoin futures block trades, making prediction markets a natural extension of its institutional infrastructure strategy.
A New Frontier for Crypto Liquidity
If finalized, the partnerships would mark one of the most prominent entries of a major crypto institution into prediction-market liquidity, potentially accelerating the sector’s maturity and attracting more traditional traders.