Prediction market platform Polymarket is recruiting staff for an internal market making desk that may trade directly against users on the platform, according to a report from Bloomberg that cited people familiar with the discussions. The hiring effort includes outreach to traders and sports bettors as the company expands its presence in the United States.
The move follows the firm’s regulatory settlement in 2022, when Polymarket paid a 1.4 million dollar penalty to the Commodity Futures Trading Commission for operating an unregistered event market platform. Since resolving the case, the company has increased its US focus and begun exploring ways to strengthen market liquidity.
Polymarket setup follows competitor practices and raises liquidity questions
The decision by Polymarket to form an internal team mirrors the structure of competitor Kalshi, which already operates a similar unit called Kalshi Trading. That desk places bids on Kalshi’s exchange to support liquidity. However, the arrangement has drawn criticism, and a proposed class action lawsuit filed last month claims the setup disadvantages users by shaping betting lines in ways that may not favor customers.
Both Polymarket and Kalshi have also sought external liquidity providers. On Kalshi, established trading firms such as Susquehanna International Group have participated in market making.
Cointelegraph reached out to Polymarket for comment but had not received a reply at the time of publication.
Industry views: prediction markets expand as Polymarket grows
Prediction markets continue to advance as an emerging segment of the digital assets ecosystem. Platforms such as Polymarket and Kalshi have seen significant growth, new partnerships and rising private market valuations as users increasingly bet on sports, politics, economics and even daily weather outcomes.
During the New York Times DealBook Summit, Coinbase CEO Brian Armstrong said that internal trading desks can increase the accuracy of prediction markets. He suggested that insider information could help markets produce better signals, although he noted that ethical concerns and decentralization principles complicate the issue.
BlackRock CEO Larry Fink, who was also on the panel, said prediction markets do not fit the long term investment outlook of his firm. He contrasted prediction markets with institutional investment strategies that focus on decades rather than moment to moment outcomes.
According to industry data, the combined trading volume across the three largest prediction markets reached 3.1 billion dollars in the third quarter of 2024, up 565 percent from 463.3 million dollars in the previous quarter. The growth underlines the rising interest in platforms like Polymarket, even as debates about fairness, liquidity and insider participation continue.
Conclusion
The recruitment of an internal market making desk marks a new phase in Polymarket operations. As prediction markets scale rapidly, the balance between liquidity, fairness and regulatory expectations remains central to the sector’s future.
