Galaxy Digital Eyes $9B Prediction Market, Joins Polymarket and Kalshi Talks
Galaxy Digital, the outfit headed by Mike Novogratz, is eyeing opportunities in the $9 billion prediction market space...
Quick overview
- Galaxy Digital is entering the $9 billion prediction market space, aiming to enhance liquidity and market efficiency.
- The firm is testing market-making strategies on platforms like Polymarket and Kalshi to improve trade execution.
- Prediction markets are gaining traction, with significant involvement from other Wall Street firms and partnerships with major companies.
- This move positions Galaxy Digital as a key player in a rapidly evolving sector of the US capital markets.
Galaxy Digital, the outfit headed by Mike Novogratz, is eyeing opportunities in the $9 billion prediction market space. The firm is actually getting right in there with Polymarket and Kalshi, looking to add some much-needed liquidity and give the market a bit of a polish. Novogratz has confirmed they’ve already done some small-scale testing and, if things go well, might bring out the big guns.
Prediction markets work by allowing traders to buy and sell contracts based on the odds of a specific event occurring. This creates unique financial instruments for speculators. By injecting liquidity into the market, Galaxy Digital will make consistent bids and offers, which in turn will help drive spreads down and make it easier to execute trades.
All of this means that Galaxy Digital is one of the first big mainstream players to really start taking advantage of a pretty untapped part of the US capital markets.
🚨PREDICTION MARKETS HEATING UP!!!
Galaxy Digital is now exploring becoming a market maker on Polymarket and Kalshi.
Galaxy Founder Mike Novogratz said they're already testing flows.
It's looking like Galaxy may scale this way bigger. pic.twitter.com/w761iko5eA
— Kyle Chassé / DD🐸 (@Kylechasse) November 25, 2025
Liquidity Push and Institutional Participation
Galaxy Digital’s move into prediction markets is definitely not the only one – other Wall Street firms like Susquehanna International Group are in there too. They’ve been offering liquidity on Kalshi, for example, while Jump Trading has been quietly cranking up its involvement. If these big players don’t get involved, prediction markets won’t function properly.
Here are a few key points to know about this development:
- Galaxy Digital is playing around with different market-making strategies on Polymarket and Kalshi.
- All that extra liquidity Galaxy Digital is adding could drive down spreads and give traders even better execution.
- Polymarket and Kalshi, together, have already done $42.4 billion in trades.
This push into prediction markets is just the latest move in Galaxy Digital’s efforts to make a name for itself in the public markets. Since they listed on Nasdaq last May under the ticker GLXY, they’ve been working hard to establish themselves on key US trading venues.
Rising Momentum and Strategic Partnerships
Prediction markets are really gaining momentum now, as more and more companies take notice and get involved. Platforms like Polymarket are even getting backing from the big players – take, for example, the $2 billion deal they just did with Intercontinental Exchange (ICE). That valued the platform at around $ 9 billion.
Now, prediction markets are really starting to pop up everywhere. Take a look at a few of the recent partnerships that have been announced:
- Google Finance and the NHL have both gotten involved with prediction market initiatives.
- Trump Media & Technology Group has launched its own prediction market platform, focusing on political events.
- Both Polymarket and Kalshi have been working hard to attract professional traders, which is helping boost liquidity and build confidence in the market.
Galaxy Digital’s move into prediction markets is a big deal. It shows that this sector has got the potential to be a whole new frontier for institutional traders and could be a real growth area for alternative finance.
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