{"id":91393,"date":"2025-11-25T16:41:26","date_gmt":"2025-11-25T13:41:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=91393"},"modified":"2025-11-25T16:45:25","modified_gmt":"2025-11-25T13:45:25","slug":"galaxy-founder-unveils-plans-for-prediction-market-entry","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/galaxy-founder-unveils-plans-for-prediction-market-entry\/","title":{"rendered":"Galaxy Founder Unveils Plans for Prediction Market Entry"},"content":{"rendered":"<p>Galaxy Digital is in discussions with platforms <a href=\"https:\/\/forklog.com\/en\/news\/what-is-polymarket\">Polymarket<\/a> and Kalshi to offer <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-market-maker\">market-making<\/a> services. This was <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-11-24\/novogratz-s-galaxy-digital-experimenting-in-prediction-markets\">revealed<\/a> by its founder, <a href=\"https:\/\/forklog.com\/en\/news\/who-is-mike-novogratz\">Mike Novogratz<\/a>.<\/p>\n<p>According to him, the firm will ensure regular trading on the platforms to maintain liquidity.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe are conducting limited experiments with market-making on prediction platforms, but I believe you will eventually see us as a provider of broader liquidity,\u201d Novogratz stated.<\/em><\/p>\n<\/blockquote>\n<p>Unlike traditional bookmakers, who act as a counterparty to every bet, Kalshi and Polymarket operate on a decentralized model: purchasing a \u201cYes\u201d contract for any event requires a corresponding \u201cNo\u201d offer from another participant.<\/p>\n<p>To ensure stable liquidity, they actively attract professional market makers. Both companies have developed incentive systems, rewarding traders who maintain trading volumes.\u00a0<\/p>\n<p>Prediction markets have long remained niche and did not attract the attention of major Wall Street players. Until recently, the only company publicly confirming its role as a market maker on Kalshi was Susquehanna International Group.<\/p>\n<p>However, the profitability of this business is beginning to change the situation. According to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-11-20\/jump-trading-quietly-joins-event-betting-craze-as-a-market-maker\">Bloomberg<\/a>, Jump Trading has already started market-making on Kalshi. Cliff Asness, head of AQR Capital Management, announced the firm is considering entering the sports betting sector.\u00a0<\/p>\n<h2 class=\"wp-block-heading\">Two Pillars<\/h2>\n<p>The prediction market is currently represented by two main players \u2014 Polymarket and Kalshi. In November alone, their combined trading volume has already exceeded $48 billion.<\/p>\n<p><iframe loading=\"lazy\" width=\"100%\" height=\"420\" frameborder=\"0\" src=\"https:\/\/www.theblock.co\/data\/decentralized-finance\/prediction-markets-and-betting\/polymarket-and-kalshi-cumulative-volume-monthly\/embed\" title=\"Polymarket and Kalshi Cumulative Volume (Monthly)\"><\/iframe><\/p>\n<p>Initially, Polymarket was the leader, gaining fame during the US presidential elections. However, in September, it was <a href=\"https:\/\/forklog.com\/en\/news\/kalshi-overtakes-polymarket-as-leader-in-prediction-market\">surpassed<\/a> by the regulated <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span> platform Kalshi.<\/p>\n<p>In recent months, both projects have attracted significant investments and entered into several strategic partnerships. In October, Polymarket <a href=\"https:\/\/forklog.com\/en\/news\/polymarket-founder-sparks-token-launch-speculation-with-poly-post\">received<\/a> $2 billion from Intercontinental Exchange, the operator of the New York Stock Exchange.\u00a0<\/p>\n<p>Amidst its <a href=\"https:\/\/forklog.com\/en\/news\/polymarket-resumes-operations-in-the-us\">official return<\/a> to the US market, the platform is <a href=\"https:\/\/forklog.com\/en\/news\/polymarket-and-kalshi-who-will-first-achieve-a-15-billion-valuation\">negotiating<\/a> to raise additional capital with a valuation of $12 billion to $15 billion.\u00a0<\/p>\n<p>In the same month, Kalshi <a href=\"https:\/\/forklog.com\/en\/news\/kalshis-valuation-soars-to-5-billion\">secured<\/a> $300 million, bringing the platform&#8217;s valuation to $5 billion, with an annual trading volume exceeding $50 billion. In November, the project <a href=\"https:\/\/forklog.com\/en\/news\/kalshi-valuation-soars-to-11-billion-after-funding-round\">received<\/a> another $1 billion investment, increasing its potential value to $11 billion.\u00a0<\/p>\n<h2 class=\"wp-block-heading\">Evolution<\/h2>\n<p>Previously, Bernstein analysts <a href=\"https:\/\/www.theblock.co\/post\/377866\/bernstein-prediction-markets-evolving-into-broader-information-venues-robinhood-kalshi-volumes-surge\">stated<\/a> that prediction markets are evolving into broader information venues. They noted that demand has expanded beyond politics and sports, encompassing economics, cultural events, corporate news, and financial indicators.<\/p>\n<p>Experts highlighted that this is driven by growing regulatory clarity, institutional investments, the development of tokenization, and active integration with retail brokers. In particular, they pointed to Robinhood as a <a href=\"https:\/\/forklog.com\/en\/news\/robinhood-to-launch-prediction-platform\">key partner of Kalshi<\/a>.\u00a0<\/p>\n<p>The company offers over 1,000 contracts and accounts for 57% of the prediction platform&#8217;s volume. The broker&#8217;s monthly turnover in the segment reached $2.5 billion, equivalent to $300 million in annual revenue.<\/p>\n<p>In October, Robinhood executive JB Mackenzie <a href=\"https:\/\/www.reuters.com\/business\/robinhood-open-deals-grow-prediction-markets-business-exec-says-2025-10-13\/\">told<\/a> Reuters that the firm is considering acquiring projects in the prediction market to expand its business.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cI am constantly monitoring potentially interesting offers \u2014 if one arises, we will examine it and assess its alignment with our objectives. We also have a strong engineering team capable of creating quality products independently. Therefore, we will seek a balance between these two approaches,\u201d he said.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>In November, <a href=\"https:\/\/forklog.com\/en\/news\/kalshi-valuation-soars-to-11-billion-after-funding-round\">rumours emerged<\/a> that the largest American cryptocurrency exchange, Coinbase, plans to integrate Kalshi into its services.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Galaxy Digital is in discussions with Polymarket and Kalshi to offer market-making services, revealed its founder Mike Novogratz.<\/p>\n","protected":false},"author":1,"featured_media":91394,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Galaxy Digital explores market-making with Polymarket and Kalshi, says founder Mike Novogratz.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[770,2364,1303,1148,1595],"class_list":["post-91393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-galaxy-digital","tag-kalshi","tag-mike-novogratz","tag-polymarket","tag-prediction-markets"],"aioseo_notices":[],"amp_enabled":true,"views":"213","promo_type":"1","layout_type":"1","short_excerpt":"Galaxy Digital explores market-making with Polymarket and Kalshi, says founder Mike Novogratz.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/91393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=91393"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/91393\/revisions"}],"predecessor-version":[{"id":91395,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/91393\/revisions\/91395"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/91394"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=91393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=91393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=91393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}