Digital asset investment manager Galaxy Digital is in talks to provide liquidity to the Polymarket and Kalshi prediction markets.
In an interview with BloombergThe company’s CEO Mike Novogratz said it is already participating in “small-scale” market-making experiments on the prediction markets, adding that it plans to provide “broader liquidity” on these platforms in the future.
By acting as a liquidity provider and market maker, Galaxy Digital would issue stable bids and offers to narrow spreads in the platforms’ order books. It will also improve the overall depth on any platform.
Only a few Wall Street firms have publicly ventured into the prediction markets. Susquehanna International Group was one of a limited number of institutional liquidity providers on Kalshi, and Jump Trading also recently started trading on the platform.
Galaxy Digital’s move comes as prediction markets gain popularity
Prediction markets allow traders to bet on real-life events. These events can range from sports results, political decisions, timelines and more. Users trade these events via simple yes or no contracts, with contract prices representing the market-implied probability of each outcome.
Polymarket home screen (Source: Polymarkt)
Currently leading the market are Polymarket and Kalshi, which together have achieved cumulative volume of $42.4 billion.
The platforms gained momentum during the 2024 US presidential election, after Polymarket correctly predicted the outcome of the election.
Kalshi challenges Polymarket’s dominance
Polymarket is a decentralization-focused platform that initially led the market but now sees its dominance challenged by Kalshi, which is regulated by the US Commodity Futures Trading Commission (CFTC).
Since September, Kalshi has seen more monthly volumes than Polymarket.
But that lead could soon be challenged as Polymarket prepares for a U.S. launch. In July, it acquired QCX, a U.S.-licensed derivatives exchange and clearing house, for about $112 million. a regulated platform to re-enter the US. It has been given the “green light” by the CFTC to return to the US.
Polymarket has started rolling out its platform to a select group of US users in beta mode and there are reports that it is targeting a rollout in late November, with an initial focus on sports prediction markets.
Polymarket recently signed a multi-year partnership with TKO Group Holdings, the owner of UFC and Zuffa Boxing, to become the “official and exclusive Prediction Market Partner” for live fan engagement.
Meanwhile, Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, has made a $2 billion strategic investment in Polymarket and the two have also entered into a deal whereby ICE will distribute Polymarket’s data.
We are pleased to announce that Intercontinental Exchange (ICE) – the parent company of @NYSEmakes a strategic investment of $2 billion at a post-money valuation of $9 billion.
Together we build the next market evolution.
A special thank you to everyone who supported us… pic.twitter.com/y7Z3koj3IU
— Polymarkt (@Polymarkt) October 7, 2025
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