Galaxy Digital Explores Liquidity Provision for Prediction Markets

Galaxy Digital is in talks with prediction market platforms Kalshi and Polymarket to serve as a liquidity provider, signaling a strategic expansion beyond its core crypto infrastructure business. The move positions the firm to capitalize on the growing intersection of decentralized finance and speculative trading.

"We're doing some small-scale experimenting with market-making on prediction markets," said Mike Novogratz's firm, hinting at broader ambitions to institutionalize a space currently dominated by retail traders. Unlike traditional sportsbooks, these platforms operate as peer-to-peer exchanges where liquidity providers like Galaxy WOULD ensure continuous trade matching between "yes" and "no" positions.

The discussions come as prediction markets gain traction for wagering on events ranging from elections to policy outcomes. Kalshi and Polymarket have recently launched incentive programs to attract more market makers—a gap Galaxy could fill with its institutional heft.