Jump Trading is reportedly taking equity positions in prediction market platforms Kalshi and Polymarket through market-making arrangements, according to Bloomberg reporting. Under the reported agreements, Jump will supply liquidity to both platforms in exchange for ownership stakes rather than direct cash investment.
Jump’s deal with Kalshi reportedly provides a fixed amount of equity, while its exposure to Polymarket is expected to increase over time based on the level of trading capacity it contributes. Both platforms are currently the largest operators in the prediction market sector, which allows users to trade contracts tied to real-world outcomes.
Recent fundraising rounds have placed Polymarket’s valuation at US$9 billion (AU$12.69 billion), while Kalshi is valued at US$11 billion (AU$15.51 billion). These arrangements resemble venture-style agreements, where trading resources are exchanged for equity participation.
Related: Giannis Buys In: Bucks Star Takes Equity Stake in Prediction Market Kalshi
Prediction markets have expanded rapidly following a shift in the US Commodity Futures Trading Commission’s stance on event-based contracts, which had previously been restricted. Kalshi and Polymarket have both recorded sharp increases in monthly trading volumes since September.
The sector has also seen rising competition, with crypto exchanges including Gemini and Crypto.com introducing rival products. Despite competition, some partners have opted to work with both platforms simultaneously.
Jump’s move follows broader expansion beyond traditional asset classes, with more than 20 staff now involved in prediction market trading. The firm operates across equities, futures and crypto markets, using proprietary trading strategies to generate returns.
Related: Gemini Slashes Workforce and Exits Australia in Bid to Survive Crypto Slump
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