Polymarket is forming an internal market-making team to trade against users on its platform, according to a Bloomberg report. The company is actively recruiting traders, including sports bettors, to join this initiative as it expands its U.S. operations following a $1.4 million settlement with the Commodity Futures Trading Commission in 2022. This move mirrors competitor Kalshi, which already operates an internal trading unit to enhance liquidity.
The decision to establish an in-house market maker comes amid significant growth in the prediction market sector, with platforms like Polymarket and Kalshi experiencing increased user engagement and high private-market valuations. Despite the potential benefits of improved market accuracy, the practice has faced criticism and legal challenges, with some users alleging unfair betting lines. Polymarket has not yet commented on the development.
Polymarket to Launch In-House Market Maker Amid U.S. Expansion
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