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Proprietary trading powerhouse Jump Trading has made a major move into the prediction market space, securing equity positions in industry leaders Kalshi and Polymarket. The Chicago-based firm will provide liquidity services to both platforms, marking another significant bridge between traditional finance and the burgeoning event contract sector.
The arrangements give Jump Trading ownership stakes in exchange for market-making services that keep spreads tight and ensure smooth trading across various event contracts. While described as “small” stakes by sources, the valuations involved make these positions extraordinarily valuable given Kalshi’s $11 billion and Polymarket’s estimated $9-10 billion valuations.
Third-party liquidity providers address a critical need in prediction markets by ensuring adequate market depth, particularly for less-traded contracts. This infrastructure support helps platforms function efficiently while reducing concerns about operators trading against their own customers through internal market-making operations.
The Jump Trading investment reflects growing Wall Street acceptance of prediction markets as legitimate financial instruments. Other major financial institutions have made similar moves—CME Group partners with DraftKings and FanDuel’s event contract platforms, while Intercontinental Exchange backs Polymarket as its largest investor.
For Kalshi and Polymarket, institutional liquidity support could help address pricing disparities that have persisted compared to traditional sportsbooks. During the 2025 NFL season, Kalshi’s sports derivatives often displayed less competitive odds than established operators like DraftKings and FanDuel.
The prediction market sector continues to attract significant investment despite ongoing legal challenges in states including Massachusetts, Nevada, and New Jersey. With Goldman Sachs also signaling potential interest, the intersection of high-frequency trading expertise and event contracts appears poised for substantial growth.
