Galaxy Digital is in discussions with prediction market platforms Polymarket and Kalshi about becoming a liquidity provider. The talks focus on Galaxy acting as a market maker to improve trading efficiency on these platforms.
Mike Novogratz, Galaxy’s CEO, confirmed the ongoing conversations in an interview on November 24, 2025. He stated the firm has started small-scale market-making tests and plans to expand liquidity provision.
No formal agreements have been reached. A Galaxy spokesperson described the efforts as experimental. Polymarket noted the talks are in early stages, while Kalshi expressed interest in adding liquidity partners.
Prediction Markets Gain Momentum
Prediction markets allow users to trade contracts on real-world events, such as elections or economic outcomes. Prices reflect crowd-sourced probabilities. The sector has seen rapid growth. Polymarket and Kalshi together recorded about 42.4 billion dollars in cumulative trading volume, according to industry data reported on November 24, 2025.
Interest spiked during the recent U.S. presidential election, drawing retail and institutional traders. Google announced on November 7, 2025, that it would display real-time data from both platforms in search results and Google Finance.
The sector’s total valuation remains unverified, with some reports suggesting a 9 billion dollar market size but lacking independent confirmation from primary sources like regulatory filings or company disclosures. Evidence is missing from official datasets or releases.
Institutional Interest Rises
Galaxy’s potential involvement signals broader institutional push into prediction markets. The firm, known for crypto services, views these platforms as a blend of information and finance. Novogratz emphasized the need for consistent counterparties in peer-to-peer systems. Other firms, including Jump Trading, have begun providing liquidity on Kalshi.
This trend could tighten spreads and boost market depth. Analysts see it as positive for adoption. Bernstein Research described prediction markets as evolving into information hubs beyond politics.
Regulatory progress aids growth. Kalshi, regulated by the CFTC, won court approval for election contracts. Polymarket acquired a licensed exchange to reopen U.S. access.
Galaxy’s move fits its strategy of supporting emerging crypto ecosystems. If finalized, it could bridge traditional finance with decentralized betting, enhancing liquidity for events in politics, sports, and economics.
