Galaxy Digital wants to become a liquidity provider for Polymarket and Kalshi.

Galaxy Digital is negotiating with two major prediction market platforms, Polymarket and Kalshi, to become a liquidity provider, aiming to increase trading depth for markets tied to real-world events. The company has currently launched small-scale market-making tests and will expand operations if initial results are positive.

The prediction market allows users to buy binary contracts based on the outcomes of elections, sports, or economic data, where the price reflects the probability as assessed by the crowd. As Polymarket and Kalshi primarily operate under a peer-to-peer order book model, the role of liquidity providers becomes essential to mitigate strong price volatility.

This sector is growing rapidly due to speculative demand and is seen as an unofficial “exploratory” channel. Polymarket is testing a platform in the US, while Kalshi operates its own market-making desk. However, the legal framework is still not synchronized. Galaxy's participation could boost liquidity and trading volume across the market.