Prediction-market platforms Polymarket and Kalshi are getting fresh attention from big players, and now Galaxy Digital is looking to join in as institutional interest shifts toward event-based trading.
Here’s the simple version of what’s happening:
Galaxy Digital is talking with both Polymarket and Kalshi about becoming a market maker — basically helping provide steady liquidity so users can always buy or sell without big price swings.
Galaxy steps into prediction markets
A Bloomberg report from Nov. 24 says Galaxy has been in discussions with both platforms to offer regular two-way quotes. That means Galaxy would be one of the major firms helping these markets stay active and smooth.
Galaxy CEO Mike Novogratz said the company wants to become a reliable counterparty on prediction platforms. Unlike sportsbooks, these platforms run peer-to-peer markets, so they depend heavily on traders willing to take both sides of a bet — “yes” or “no.”
Why this matters
Prediction markets have exploded in popularity this year. People are trading on everything — politics, sports, economic reports, and even cultural events. But for these markets to work well, they need liquidity providers. Every time someone buys a “yes” contract, someone else has to take the “no” position.
In the past, the space was too small to attract large Wall Street-style firms. Susquehanna was one of the few known to be active on Kalshi. But that’s changing fast.
- Jump Trading recently began market making on Kalshi.
- AQR’s Cliff Asness said the firm is considering expanding into sports.
- Kalshi even runs its own internal market-making team during heavy trading periods.
With Galaxy now exploring the space, the level of institutional involvement is clearly rising.
Why prediction markets are blowing up
Polymarket and Kalshi now control about 97% of all global prediction-market volume. Several things pushed this surge:
- ** regulation progress**
- big-name investors
- new funding rounds
- major firms entering the space
Kalshi recently completed a massive $1 billion raise at an $11 billion valuation, led by big names like Sequoia and CapitalG. The platform now plans to expand into areas like sports and other consumer markets.
Polymarket is preparing a new funding round that could value the company between $12–15 billion. This comes after a previous $9 billion level supported by a $2 billion investment from ICE, the company behind the New York Stock Exchange.
During the 2024 U.S. election season, activity reached record levels. Polymarket alone handled over $3.5 billion, beating some mainstream betting platforms.
Momentum grew even more after Google announced on Nov. 7 that it would show real-time prediction odds from Polymarket and Kalshi directly in Google Search and Google Finance. That brings these platforms in front of millions of everyday users.
Regulatory steps open the door
Earlier this year, Polymarket bought QCEX — a CFTC-licensed exchange — for $112 million. This move reopened the U.S. market for Polymarket and closed out a DOJ inquiry.
Kalshi already has CFTC approval and recently won a major court ruling allowing election contracts. It now plans to expand into event categories that could compete with parts of traditional finance.
The bottom line
Galaxy Digital’s talks with Polymarket and Kalshi show just how far prediction markets have come. What used to be a niche corner of the internet is quickly turning into a serious market supported by top-tier trading firms.
This is the phase where prediction markets may transform from small, experimental platforms into a major part of how people trade political, economic, and cultural events — with deep liquidity and big institutional players leading the way.
