Galaxy Digital, founded by Mike Novogratz, is in talks to supply liquidity for prediction market platforms Polymarket and Kalshi.
In an interview with Bloomberg, Novogratz stated that Galaxy Digital is now “small-scale experimenting” with market-making on prediction markets and that the company intends to offer “broader liquidity” on those platforms in the future.
Entry into the prediction market
The action represents Galaxy Digital, a digital asset investment management company, entering the rapidly growing prediction market industry, which is becoming more widely acknowledged as a new frontier fusing information and money.
Also Read: Truemarkets, Endorsed By Vitalik Buterin, Launches AI-Powered Prediction Markets On Ethereum & Base
With contract prices reflecting the market-implied likelihood of a certain result, prediction markets enable users to trade straightforward yes/no contracts. With a combined volume of over $42.4 billion, Polymarket and Kalshi are the two leading companies in the industry.
CFTC-regulated Kalshi has surpassed decentralisation-focused Polymarket in monthly volume since September, despite Polymarket’s early dominance following the U.S. election results.
Recently, the two sites signed both solo and cooperative deals with prominent partners. The U.S. National Hockey League, Google Finance, and Galaxy Digital decided to collaborate with both platforms.
Experts pitch in
Prediction markets are “evolving to be broader information markets,” with demand now extending well beyond politics and sports into economics, culture, business activities, and financial indicators, according to a note written by Bernstein analysts to clients earlier this month.
Other significant firms in the cryptocurrency and financial industries, such as Gemini and CME Group, have lately announced ambitions to enter the market with their own platforms.
Rise of prediction markets
TKO Group Holdings, the parent company of the UFC and Zuffa Boxing, has collaborated with Polymarket for several years to provide real-time prediction markets to live combat sports.
The first sports leagues to employ prediction market technology in live events will be the UFC and Zuffa Boxing, because of this deal.
In October, Trump Media and Technology Group Corp., the company that runs the streaming service Truth+, the FinTech company Truth.Fi, and the social media platform Truth Social announced that it will enable prediction markets on Truth Social.
An exclusive deal between Crypto.com and Derivatives North America (CDNA), a CFTC-registered exchange and clearinghouse, would be used to accomplish this.
Additionally, big tech is contributing to the industry’s mainstreaming. Google Finance has announced that it would start displaying real-time data from Polymarket and Kalshi in the upcoming weeks, enabling users to inquire about upcoming events and observe how the general public is pricing the odds.
That level of exposure might make prediction markets seem less like a specialised experiment and more like a normal element of the market environment for both traditional investors and cryptocurrency natives.
Also Read: Underdog Partners With Crypto.com To Launch Sports Prediction Markets In 16 U.S. States