Galaxy Digital Explores Liquidity Provision for Prediction Markets Polymarket and Kalshi

Galaxy Digital, the digital asset investment firm led by Mike Novogratz, is in discussions to become a liquidity provider for prediction market platforms Polymarket and Kalshi. These platforms dominate the global prediction market sector, accounting for 97% of the market with a combined trading volume of $42.4 billion.

Polymarket is currently raising funds at a potential valuation of $12-15 billion, while Kalshi recently closed a $1 billion funding round at an $11 billion valuation. The growing interest in prediction markets has attracted major trading firms, including Jump Trading and Susquehanna International Group, signaling institutional adoption of the space.

Google's recent announcement to display real-time odds from both platforms in Google Search and Google Finance further validates the sector's mainstream potential. Novogratz revealed that Galaxy Digital has begun small-scale market-making experiments and plans to expand its liquidity services, acting as a consistent counterparty for the peer-to-peer binary contracts traded on these platforms.