Jump Trading, a Chicago-based quantitative trading firm, is reportedly preparing to acquire minority stakes in prediction market platforms Polymarket and Kalshi, signaling rising institutional involvement in the rapidly expanding prediction markets sector. According to a Bloomberg report citing sources familiar with the discussions, the equity stakes would be exchanged for providing trading liquidity on both platforms.
While exact ownership percentages were not disclosed, Bloomberg noted that Jump’s stake in Polymarket would scale based on the level of liquidity it supplies, reflecting a Wall Street–style approach to deepening market efficiency and volumes. Founded over two decades ago, Jump Trading is a major player in proprietary trading and has significantly expanded into digital assets, acting as both a market maker and venture investor across crypto infrastructure and exchanges.
Polymarket and Kalshi are currently the two largest prediction market platforms, each commanding multibillion-dollar valuations following recent funding rounds. Polymarket raised $2 billion from NYSE parent Intercontinental Exchange, valuing the company at $9 billion, while Kalshi secured $1 billion in funding in December at an $11 billion valuation.
Although both platforms allow trading on real-world event outcomes, they operate under different structures. Polymarket is a decentralized platform built on Polygon, enabling onchain settlement of prediction contracts, while Kalshi operates as a centralized, federally regulated exchange in the United States under the oversight of the CFTC.
Prediction markets gained broader attention after Polymarket accurately forecast the outcome of the 2024 US presidential election, reinforcing their role as real-time information and risk-pricing tools. Analysts estimate the sector could reach trillions of dollars in annual trading volume by the end of the decade, with sports-related contracts seen as a key growth driver.
Despite this momentum, regulatory challenges remain. While Kalshi is approved by the CFTC as a Designated Contract Market, it faces opposition from regulators in states including Nevada, Maryland, New Jersey, and Ohio, resulting in ongoing litigation and enforcement actions.
Source: Bloomberg
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