Galaxy Digital is in active discussions to provide liquidity for Polymarket and Kalshi, two of the world’s largest prediction-market platforms, as institutional interest shifts toward event-driven trading. The move signals that prediction markets once a niche corner of crypto are now attracting serious attention from Wall Street-aligned firms.
A Nov. 24 Bloomberg report revealed that Galaxy is considering supplying continuous two-way quotes, improving market depth and narrowing spreads across these event-based trading platforms.
Galaxy’s Entry Could Mark a Turning Point
Galaxy Digital, traditionally focused on institutional crypto trading and asset management, is now eyeing prediction markets as the next frontier. CEO Mike Novogratz says the firm aims to become a reliable counterparty on platforms where users trade binary outcomes tied to real-world events.
Unlike sportsbooks, Polymarket and Kalshi operate peer-to-peer markets. Every “YES” position requires someone else to take the “NO” side making consistent liquidity providers crucial for efficient pricing.
For years, prediction markets were too small to attract large firms. Only a few players, like Susquehanna International Group, publicly confirmed participation.
But that landscape is rapidly changing.
- Jump Trading recently began market making on Kalshi
- AQR’s Cliff Asness said the firm is evaluating a sports-betting expansion
- Kalshi even maintains an internal market-making desk during heavy traffic
Galaxy’s potential involvement reflects rising institutional conviction in the sector’s growth trajectory.
Why Prediction Markets Are Drawing Major Capital
Polymarket and Kalshi now account for ~97% of global prediction-market volume, benefiting from explosive interest, regulatory progress, and massive funding rounds.
Major developments fueling growth:
🔹 Record Funding Rounds
- Kalshi raised $1B at an $11B valuation, led by Sequoia and CapitalG
- Polymarket is preparing a new round valuing the company at $12–15B, up from a previous $9B valuation after a $2B strategic investment from ICE (parent of the NYSE)
🔹 Massive Trading Volumes
During the 2024 U.S. election cycle, Polymarket cleared over $3.5B — surpassing major sportsbooks.
🔹 Google Search & Finance Integration
On Nov. 7, Google announced it will display live odds from Polymarket and Kalshi directly in:
- Google Search
- Google Finance
This move brings real-time prediction-market data to millions of mainstream users.
🔹 Regulatory Wins
- Polymarket bought CFTC-licensed QCEX for $112M, reopening U.S. access and resolving a DOJ inquiry
- Kalshi secured court approval for election-based contracts, paving the way for new categories that could rival parts of traditional finance
Galaxy’s Discussions Signal a New Phase of Institutional Adoption
If Galaxy Digital moves forward, it would join a small but growing club of top-tier market makers actively scaling liquidity across political, economic, sports, and cultural prediction markets.
Industry analysts say this may mark the beginning of a broader institutional migration into event-driven trading, a sector increasingly viewed as a future pillar of crypto-native financial infrastructure.
