Market-makers act as traders willing to put up and take money on the other side of trades, with Jump acquiring stakes in Kalshi and Polymarket in exchange for providing trading resources.
 

Key Points

Jump Trading’s stake in Polymarket will increase over time depending on how much trading volume the firm provides for Polymarket’s US operations

Kalshi’s latest funding round eventually led to a valuation of $11bn, while Polymarket was most recently valued at $9bn

Susquehanna International Group was the first trading firm to work with a prediction markets operator as a market-maker, collaborating with Kalshi in April 2024
 

Jump Trading, a proprietary trading firm founded in 1999, will acquire small stakes in Kalshi and Polymarket to serve as a “market-maker” for both platforms and provide liquidity for the operators’ prediction market offerings. 

Jump Trading’s stake in Kalshi was described as a set amount by those who confirmed the transactions, while its stake in Polymarket will grow over time depending on how much trading volume the firm provides to the operator’s US business. 

Market-makers act as traders willing to put up and take money on the other side of trades, using its own capital and generating profits from the differences in price movements.

Jump Trading produces revenue from buying and selling securities and derivatives such as US Treasury Securities, futures and cryptocurrency. 

Following the prediction market operators’ latest funding rounds, Kalshi was given a valuation of $11bn, while Polymarket was most recently valued at $9bn. At the time of writing, financial terms of either entities’ agreement with Jump Trading have yet to be released. 

Susquehanna International Group, a trading business overseen by former professional gambler Jeff Yass, was the first financial trading firm to work with a prediction markets operator in a market-maker role, having collaborated with Kalshi in April 2024.

Kalshi also reported its Super Bowl LX-related markets processed over $865.2m in trading volume, eventually leading to a delay in trades being posted during the game.

Trades on Kashi were still executed in real-time, however, including just over $500m on the operator’s "Pro Football Champion" outcome, with 67% of users having correctly chosen the Seattle Seahawks to win Super Bowl LX.

 

 

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