Jump Trading to take small stakes in prediction markets Polymarket, Kalshi: Bloomberg

Jump Trading plans to take a small stake in each of the prediction-market platforms Kalshi and Polymarket, Bloomberg reported on Monday, citing people with knowledge of the matter.

The trading powerhouse, which has a significant focus on cryptocurrency, will gain the stakes in exchange for providing liquidity on the two platforms.

Jump is set to take a fixed amount of equity in Kalshi, while its stake in Polymarket will grow over time depending on the trading capacity that the firm provides to the platform’s U.S. operation.

Kalshi and Polymarket are the two most prominent prediction-market platforms, having both acquired multibillion dollar valuations. They rely on market makers like Jump to put up the money to take the other side of customers’ trades. Market makers then profit from the difference in price movements.

Jump expanded into prediction-market trading in recent months, recruiting 20 staffers in recent months for that business, according to Bloomberg.

The firms did not immediately respond to CoinDesk’s request for further comment.