Jump Trading plans to take a small stake in each of market prediction platforms Kalshi and Polymarket, Bloomberg reported Monday, citing people with knowledge of the matter.
The trading powerhouse, which particularly focuses on cryptocurrency, will obtain the shares in exchange for providing liquidity on both platforms.
Jump is expected to take a fixed amount of equity in Kalshi, while its stake in Polymarket will increase over time based on the trading capacity the company provides to the platform’s US operations.
Kalshi and Polymarket are the two most prominent prediction market platforms, both having acquired multi-billion dollar valuations. They rely on market makers like Jump to invest the money needed to support the other side of customers’ trades. Market makers then profit from the difference in price movements.
Jump has expanded into prediction market trading in recent months, hiring 20 employees in recent months for that business, according to Bloomberg.
The companies did not immediately respond to CoinDesk’s request for additional comment.
