Jump Trading, the giant name of the finance world, has signed a strategic partnership with prediction markets Kalshi and Polymarket, the shining stars of the recent period. According to the information shared by Bloomberg, the company will act as a market maker on both platforms and will own company shares in return for this service. This development shows that the efficiency-oriented trade volume, which gained momentum with the relaxation of US commodity regulators, will move to a new dimension.
Partnership Move in Exchange for Liquidity
This strategy of Jump Trading aims to add not only capital but also operational depth to the platforms. Market makers step in when there is no buyer or seller and ensure the continuity of transactions. Bloomberg’s data, based on unnamed sources, reveals that Jump will receive a certain amount of equity directly from Kalshi, and may gradually increase its investment in Polymarket over time. This structure represents a hybrid investment model in which a liquidity provider giant directly partners in the growth of the platforms on which it carries out transactions.
This step means a return to the field for Jump Trading, which has moved away from the crypto markets, especially after the collapse of the Terra ecosystem. The company has led critical projects for Solana in the past, such as the Firedancer client and the Wormhole bridge. Now he is transferring his experience to prediction markets, where giants such as Google Finance and the NHL are already showing interest. Prediction platforms appeal to a wide audience because they allow betting on the outcomes of real-world events rather than complex financial instruments.
Battle of the Giants in Prediction Markets
Kalshi and Polymarket are the two largest players in this niche, reaching a valuation of $11 billion and $9 billion. The US Commodity Futures Trading Commission (CFTC) softened its stance on binary options-like event trading, which it had previously banned, paving the way for these huge valuations. While the monthly transaction volumes of both platforms have been increasing at a dizzying pace since September, well-established exchanges such as Gemini and Crypto.com are also trying to get a share of this cake by launching their own products.
In this environment where competition is fierce, getting the support of a market maker like Jump Trading is vital for platforms. Narrowing the spread in the order books and faster execution of transactions are among the factors that directly improve the user experience. Industry representatives predict that the entry of large institutional players into these markets will transform prediction markets from a “marginal hobby” into a mainstream financial instrument.
