Galaxy Digital Joins Polymarket and Kalshi as Liquidity Provider
Galaxy Digital, led by CEO Mike Novogratz, has begun market-making experiments and plans to act as a liquidity provider on Polymarket and Kalshi. Galaxy Digital’s entry follows Jump Trading’s move into Kalshi, underlining rising institutional interest in prediction markets. These platforms use peer-to-peer order books for binary contracts tied to events—from elections to sports—and have processed over $42.4 billion in transaction volume. With Kalshi regulated by the CFTC and Polymarket operating offshore, Galaxy Digital’s liquidity support could deepen order books, reduce price volatility, and drive sector maturation despite a patchy US regulatory landscape.
Neutral
Galaxy Digital’s planned liquidity role in prediction markets is unlikely to directly influence the price of any specific cryptocurrency token. While institutional market-making on Polymarket and Kalshi could enhance trading stability and deepen order books in these niche platforms, they do not trade mainstream crypto assets. Therefore, this development is expected to have a neutral impact on crypto prices in both the short and long term.