Jump Trading plans to take a small stake in each of prediction market platforms Kalshi and Polymarket, Bloomberg reported on Monday, citing people with knowledge of the matter.
The trading power center, which has a significant focus on cryptocurrency, will win the stake 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 the firm brings to the platform’s US operation.
Kalshi and Polymarket are the two most prominent prediction market platforms, both of which have acquired multi-billion dollar valuations. They are dependent on market makers such as Jump putting up the money to take the other side of the customers’ trades. Market makers then profit from the difference in price movements.
Jump expanded into market prediction trading in recent months, recruiting 20 employees in recent months for that business, according to Bloomberg.
The firms did not immediately respond to CoinDesk’s request for further comment.
