Jump Trading is poised to acquire minority stakes in prediction-market platforms Polymarket and Kalshi in exchange for providing trading liquidity across both platforms, according to Bloomberg sources.

Jump Trading, a veteran proprietary trader and crypto market maker, has expanded into digital assets and backs blockchain projects and exchanges, signaling a strategic push into prediction markets.

The deal reportedly contemplates Jump receiving a fixed equity stake in Kalshi with the option to scale its investment in Polymarket over time as liquidity grows.

Analysts note that sports-related contracts are a major growth driver for prediction markets, though regulatory constraints could slow expansion.

Polymarket has recently gained visibility for accurately forecasting the 2024 U.S. presidential election, underscoring the sector’s potential despite regulatory headwinds.

Stanford expert Dr. Sarah Chen highlights sophisticated risk management in these markets, suggesting the structure could model institutional participation.

Kalshi operates with CFTC oversight as a Designated Contract Market but faces state-level pushback and ongoing litigation in states such as Nevada, Maryland, New Jersey, and Ohio.

The acquisitions could reshape prediction-market dynamics by boosting liquidity, efficiency, and price discovery, potentially enriching global financial ecosystems.

Industry observers emphasize regulatory hurdles as a key adoption barrier, including active litigation and cease-and-desist actions in multiple states.

Market pricing in sports derivatives remains competitive, with Kalshi’s NFL contracts underperforming against traditional sportsbooks in 2025; higher liquidity could improve competitiveness.

Susquehanna International Group has been a competing market maker since 2024, and expanding third-party liquidity providers is viewed as beneficial to reduce reliance on internal market making for retail clients.

Prediction markets are seen as offering real-time information and risk-pricing utility, with industry forecasts suggesting trillions in annual trading volume by decade’s end, driven in part by sports contracts.