Jump Trading Bets Big: Secures Equity Stakes in Kalshi and Polymarket via Liquidity Deals

Jump Trading, a global proprietary trading powerhouse, is strategically entering the prediction market arena. In exchange for providing crucial market-making services, the firm will acquire equity stakes in two leading platforms: Kalshi and Polymarket.

This move is significant as it signals deepening institutional interest and validation for the rapidly growing prediction market sector. For the industry, it means enhanced liquidity, stability, and a major endorsement from a traditional finance heavyweight, potentially accelerating mainstream adoption of event-based trading.

The Deal Structure: Equity for Liquidity

According to exclusive reports from Bloomberg and individuals familiar with the confidential arrangements, Jump Trading has finalized agreements with both Kalshi Inc. and Polymarket. The core of these deals is a swap: Jump’s expertise and capital as a liquidity provider for ownership stakes in these private companies.

The specific terms differ between the two prediction market leaders. With Kalshi, Jump will receive a predetermined, fixed amount of equity. In contrast, its stake in Polymarket is designed to be dynamic; the equity share will scale upwards over time, directly tied to the volume and capacity of trading liquidity Jump supplies to the platform’s U.S. operations. This performance-based model aligns Jump’s growth directly with Polymarket’s success.

For Jump, this is a clear strategic win. The firm, founded in 1999 by veteran Chicago Mercantile Exchange traders, secures a financial interest in two of the sector’s most valuable companies. Recent fundraising rounds value Polymarket at a staggering $9 billion and Kalshi at an even higher $11 billion. Even small equity positions represent significant potential value.

Why Jump Trading Is Making This Strategic Move

This venture into prediction markets is not an isolated experiment for Jump but part of a deliberate expansion beyond its core equities and derivatives business. As reported in late 2025, the company has been allocating substantial resources—both financial and human—to build technology tailored for trading event-based contracts regulated by the U.S. Commodity Futures Trading Commission (CFTC).

The firm now boasts a dedicated team of over 20 staffers focused solely on trading prediction markets. This specialized team leverages Jump’s advanced, AI-driven trading models to navigate these new markets. Jump’s overarching strategy appears to be securing footholds in high-growth fintech verticals, using its market-making prowess as a key to unlock equity ownership.

Furthermore, these agreements are structured similarly to venture capital investments. Instead of providing cash, Jump is contributing “resources in the form of trading.” This clever approach allows Jump to utilize its core competency to gain exposure to the upside of disruptive platforms without a traditional cash investment, a model increasingly attractive to trading firms with deep operational expertise.

The Prediction Market Boom: A Primer on the Sector

What exactly are Jump and other giants betting on? Prediction markets, also known as event contracts markets, are platforms where users can trade shares based on the outcome of future events. These can range from political elections and sports championships to economic indicators and entertainment awards. Prices fluctuate like a stock, reflecting the crowd’s collective probability assessment of an event occurring.

The recent explosive growth of platforms like Kalshi and Polymarket can be attributed to a more permissive regulatory stance from the CFTC. The regulator has shifted from viewing most event-based trading as restricted binary options to a recognized, regulated financial activity. This green light has unleashed a wave of innovation and capital.

Liquidity is the lifeblood of any trading venue, and it’s especially critical for peer-to-peer prediction markets. For every user wanting to bet “yes” on an outcome, there must be another user willing to take the “no” side. Market makers like Jump solve this problem by using their own capital to continuously provide buy and sell quotes, ensuring users can always enter or exit positions smoothly, even in uncertain conditions.

Key Drivers Behind the Prediction Market Surge

Regulatory Tailwinds: The CFTC’s evolving framework has created a legitimate pathway for U.S.-based event trading, moving it from a gray area into a regulated activity.

Cultural Shift: Surveys indicate a growing public acceptance, with nearly a third of Americans believing prediction markets will become a more important part of culture.

Mainstream Partnerships: Both Kalshi and Polymarket have secured multi-year deals with major entities like Google Finance and the National Hockey League, embedding their markets into mainstream platforms.

Retail Accessibility: Apps like Robinhood have integrated prediction markets (partnering with Kalshi), introducing the concept to millions of casual investors.

Institutional Race for Position: Susquehanna, Robinhood, and Beyond

Jump Trading is not the first major financial firm to identify opportunity in prediction markets. Susquehanna International Group (SIG), the trading giant led by former professional gambler Jeff Yass, publicly announced its role as a market maker for Kalshi in April 2024. SIG’s involvement provided early institutional credibility to the space.

Perhaps more consequentially, Susquehanna partnered with retail brokerage Robinhood Markets Inc. in late 2025 to acquire a majority stake in LedgerX, a CFTC-regulated derivatives exchange. This acquisition was a strategic masterstroke. It gives Robinhood and Susquehanna direct control over the core infrastructure needed to list, clear, and settle event contracts entirely on their own terms.

This move strongly signals that Robinhood may be preparing to launch its own native prediction market offerings, using Susquehanna as its “day-one liquidity provider.” It underscores a broader trend: leading trading firms and platforms are not just participating in prediction markets—they are actively moving to own and control the underlying infrastructure, viewing it as a critical future revenue stream and user engagement tool.

Challenges and Considerations for Jump Trading

While the strategic logic is clear, Jump’s path forward is not without potential headwinds. The firm remains a significant defendant in ongoing litigation related to the 2022 collapse of the Terra ecosystem, facing lawsuits alleging unlawful profiting from the stablecoin’s demise. These legal challenges, while not directly related to its prediction market activities, cast a shadow over its crypto-adjacent operations.

Additionally, Jump’s deep involvement in crypto—as a market maker, investor through Jump Crypto, and developer of key infrastructure like the Wormhole bridge and Firedancer Solana client—ties its reputation closely to the volatile digital asset sector. Any major downturn or regulatory crackdown in crypto could indirectly affect sentiment and capital allocation towards its other ventures, including prediction markets.

Finally, the prediction market sector itself is becoming increasingly competitive. While Kalshi and Polymarket are current leaders, other crypto-native exchanges like Gemini and Crypto.com are launching competing products. Jump’s success is now partially pegged to the continued dominance of its two chosen partners in a fast-evolving landscape.

The Future of Event-Driven Trading

The entry of Jump Trading, following Susquehanna, represents a pivotal maturation phase for prediction markets. The involvement of sophisticated, capital-rich proprietary trading firms brings much-needed depth and stability to these platforms. Their market-making ensures tighter spreads and reliable execution, which in turn attracts more users—creating a virtuous cycle of growth.

For the average trader or bettor, this institutionalization means a more professional, liquid, and resilient trading environment. It also suggests that the types of events available to trade will expand in both scope and complexity, moving further beyond sports and politics into corporate, financial, and scientific outcomes.

The long-term vision held by many in the industry is of prediction markets evolving into a fundamental tool for information aggregation and risk hedging—a “futures market for everything.” The billions in valuation and the fierce competition for liquidity partnerships indicate that powerful players believe this vision is increasingly plausible. Jump Trading’s latest move is a decisive bet that the future of forecasting is not just about guessing outcomes, but about building the financial infrastructure to trade them.