Galaxy Digital, led by Mike Novogratz, is preparing to enter prediction markets, one of the emerging areas of the digital asset market. Speaking to Bloomberg, Novogratz explained that the company has conducted “small-scale experiments” in market making on the Polymarket and Kalshi platforms and plans to provide broader liquidity on these platforms in the near future.
Galaxy Digital’s Strategic Move: The Intersection of Information and Finance
Galaxy Digital’s move towards prediction markets reflects the growing interest in new generation investment areas that combine information and finance. Polymarket and Kalshi are the two dominant platforms in the industry, with total transaction volume currently exceeding $42.4 billion. These platforms, where users price possibilities by buying and selling “yes” or “no” contracts, are becoming increasingly important in the financial world in terms of market-based data production.
Regulated by the CFTC, Kalshi has surpassed decentralization-focused Polymarket in terms of monthly transaction volume since September. Polymarket had gained popularity especially with the US election results; Kalshi, on the other hand, started to attract the attention of institutional investors thanks to its regulation advantage. Galaxy Digital’s active role in this transformation by providing liquidity to both platforms may further increase competition in the sector.
Bernstein analysts state that prediction markets have now evolved into “broader information markets” and that demand is not limited to politics or sports. It is observed that the transaction volume is increasing rapidly in different areas such as economy, culture, corporate activities and financial indicators.
New Partnerships and the Future of the Market
Galaxy Digital’s potential partnership with Polymarket and Kalshi is seen as heralding an era of blurring the boundaries of crypto and traditional finance. According to Bloomberg, major institutions such as Google Finance and the US National Hockey League have also recently collaborated with these platforms. These partnerships are considered strategic steps that strengthen the legitimacy and visibility of prediction markets.
Increasing corporate interest in prediction markets also offers new opportunities for the democratization of financial data production. The fact that industry giants such as Gemini and CME Group also announced plans to develop their own forecasting platforms confirms the future growth potential of this field. Galaxy Digital’s involvement as a liquidity provider is interpreted as a critical threshold that can increase both investor confidence and market depth.
