Jump Trading will exchange liquidity provision for a small equity stake in Kalshi and Polymarket

PANews February 10 News, according to Bloomberg, market maker Jump Trading is about to provide liquidity to prediction market platforms in exchange for a small stake in Kalshi Inc. and Polymarket. Sources familiar with the matter revealed that Jump’s agreement with Kalshi will involve a fixed amount of equity, while its stake in Polymarket will increase over time based on the trading volume it provides in the U.S. market. This move allows Jump to acquire stakes in these two prediction market platforms. Currently, Polymarket is valued at approximately $9 billion, and Kalshi is valued at around $11 billion. Such market-making agreements are similar to venture capital arrangements, where Jump exchanges trading resources for equity. Prediction market platforms rely on market makers to provide liquidity and take on counterparty risk. Jump’s entry into prediction markets is part of its expansion beyond traditional asset classes like stocks. It is reported that the company has increased personnel and resources to develop technology supporting event contract trading regulated by the CFTC, with over 20 employees dedicated full-time to this business.