Jump Trading poised to gain stakes in Kalshi and Polymarket in exchange for providing liquidity on the prediction-market platforms.

Bloomberg reports that Chicago-based proprietary trading firm Jump Trading is set to receive equity stakes in prediction-market platforms Kalshi Inc. and Polymarket in return for acting as a major liquidity provider on their venues. According to people familiar with the arrangements, Jump’s deal with Kalshi involves a fixed equity stake, while its stake in Polymarket will scale with the amount of trading capacity it supplies to the platform’s U.S. operations. These are described as “venture-style” liquidity agreements, effectively blending market-making services with early-stage strategic investment. The move deepens the connection between institutional trading firms and the fast-growing real‑money event prediction market sector, where users trade contracts on outcomes of elections, macroeconomic data releases, policy decisions, and other real‑world events. Kalshi operates a regulated U.S. exchange for event contracts, having secured CFTC approval, and has been working to make prediction markets resemble traditional financial instruments, including executing a first block trade with liquidity from Jump Trading in 2024 to attract more institutional-style flow. Polymarket, by contrast, is a crypto-native, on-chain prediction platform that has faced past regulatory scrutiny in the U.S. and is building a compliant U.S. operation in parallel to its global operations. This set of deals matters because it signals a formal alignment between a major high-frequency/quant trading firm and leading prediction-market venues, potentially improving market depth, narrowing spreads, and making it easier for larger traders to enter and exit positions. It also illustrates a broader trend of institutional capital treating prediction markets as a serious financial vertical rather than a niche retail product, with liquidity arrangements now tied directly to equity upside for market makers. If successful, the model could accelerate the maturation of event markets as an asset class, blur boundaries between traditional derivatives and on-chain prediction markets, and set a template for how other trading firms structure strategic liquidity-for-equity deals across Web3 and regulated platforms. "entities":["Jump Trading","Kalshi Inc.","Polymarket","Kalshi","Polymarket US operations","CFTC (Commodity Futures Trading Commission)"]}'}`

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