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Jump is positioned to acquire a fixed equity stake in the prediction market Kalshi, while its investment in Polymarket will increase over time based on the trading capacity the firm contributes.
Jump Trading intends to take a minor equity stake in the prediction-market platforms Kalshi and Polymarket. (sergeitokmakov/Pixabay, modified by CoinDesk)
Key points:
- Jump Trading is planning to acquire minor stakes in the prediction-market platforms Kalshi and Polymarket.
- Jump, with a considerable emphasis on cryptocurrency, will obtain the stakes in exchange for providing liquidity on both Kalshi and Polymarket.
- Kalshi and Polymarket, the leading platforms in the prediction market sector, depend on market makers such as Jump to supply capital to take the opposing side of trades.
According to a report by Bloomberg on Monday, Jump Trading is looking to take a small stake in both Kalshi and Polymarket, citing sources familiar with the situation.
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The trading firm, which heavily focuses on cryptocurrency, will acquire these stakes in return for supplying liquidity to the two platforms.
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Jump is expected to secure a fixed equity interest in Kalshi, while its investment in Polymarket will expand over time based on the trading volume that the firm provides to the platform’s U.S. operations.
Kalshi and Polymarket stand out as the leading prediction-market platforms, both having achieved billion-dollar valuations. They depend on market makers like Jump to provide the necessary funds to take the other side of customers’ trades. These market makers then earn profits from fluctuations in price movements.
Recently, Jump has ventured into prediction-market trading, hiring 20 new employees for this sector, as reported by Bloomberg.
The companies did not promptly respond to CoinDesk’s inquiry for additional comments.
