Crypto.com’s 2025 Power Move: Internal Market Maker Supercharges Prediction Markets

Crypto.com just flipped the script on prediction markets. The exchange is bringing market-making in-house—a strategic pivot that could reshape how users bet on everything from elections to token prices.

Why This Changes the Game

By ditching third-party liquidity providers, Crypto.com cuts out the middleman. The platform gains direct control over spreads and depth, aiming to offer tighter pricing and instant execution. For traders, it means less slippage on those long-shot political bets or niche crypto event wagers. For the exchange, it's a play to capture more fee revenue and user engagement, locking traders into its ecosystem.

The Bigger Picture

This isn't just about better odds on the next 'meme coin of the month.' It's a calculated expansion into a high-margin vertical. Prediction markets have simmered for years, often hampered by liquidity issues and regulatory side-eye. By deploying its own capital, Crypto.com is betting it can solve the first problem while its global regulatory groundwork handles the second. It's a vertical integration play straight out of traditional finance's playbook—just with more crypto volatility and, presumably, fewer suits.

One cynical take? It's a brilliant way to keep user funds swirling within the Crypto.com universe—because why let profitable trading activity leak to a competitor when you can internalize the spread and call it innovation?

Watch for competitors to follow suit. When one major player vertically integrates a profit center, others rarely just stand by and admire. The race to own every layer of the crypto stack just added another lap.

Addressing Conflicts

On Tuesday, Bloomberg reported that the exchange is recruiting for a new role on its market-making desk. They are citing a job posting for a “quantitative trader” who could help them buy and sell contracts tied to the outcomes of sporting events on the prediction platform. Mainly about the potential conflicts of interest, as the exchanges facilitate trading against customer orders.

https://t.co/1aQemhmjuy is looking for a new employee to work on a market making team that will face off against customers on the company’s prediction market exchange https://t.co/M90qMhiCQ3

Industry-Wide Trend

The bottom line for customers is that more competition and liquidity on the platform creates a better overall experience,” the spokesperson said, adding that internal and external market makers operate under the same rules to ensure market fairness and integrity. Also, he said,

Regulatory Landscape

They are not only the prediction-market operator to rely on the crypto market makers to support liquidity. The growth of these prediction markets presents both opportunities and risks for investors. On the one hand, these platforms offer a unique way to hedge bets on real-world events or capitalise on market sentiment.