Jump Trading Taps Venture-Style Deals to Back Prediction Market Leaders

Jump Trading is set to acquire minority stakes in prediction‑market platforms Kalshi and Polymarket. The investments are structured around Jump’s provision of liquidity, with a fixed equity stake in Kalshi and a variable stake in Polymarket that grows with trading capacity.

Strategic Market Making in Event Contracts

Proprietary trading firm Jump Trading is set to acquire minority stakes in prediction-market platforms Kalshi and Polymarket, according to a Bloomberg report citing anonymous sources. The investments are structured in exchange for Jump’s provision of liquidity on the platforms.

Jump’s agreement with Kalshi involves a fixed equity stake tied to its liquidity commitments, while its stake in Polymarket will increase over time depending on the scale of trading capacity Jump contributes. According to Bloomberg, Kalshi is valued at $11 billion, while Polymarket holds a valuation of $9 billion.

The arrangements resemble venture-style deals, with Jump providing trading resources in return for ownership. Market makers, such as Jump, are considered critical to prediction markets, ensuring continuous liquidity and execution even during periods of volatility.

Reports on Jump’s deal with the two platforms come nearly two years after global trading firm Susquehanna International Group, or SIG, disclosed that it had become a market maker for Kalshi. That move made it one of the first major trading firms to publicly embrace prediction markets. Last year, SIG and retail brokerage Robinhood Markets Inc. acquired a majority stake in Ledgerx, securing control over derivatives infrastructure for event contracts.

Read more: Miami International Holdings to Sell Majority Stake in LedgerX to Robinhood and Susquehanna

Jump has been diversifying beyond equities and cryptocurrency, building technology and staffing more than 20 traders to support event-based contracts regulated by the Commodity Futures Trading Commission. The firm, founded in 1999 by former Chicago Mercantile Exchange pit traders, is a significant player across asset classes, including U.S. Treasury securities, futures and digital assets.

Meanwhile, Jump’s role as both liquidity provider and shareholder raises potential conflict-of-interest concerns. Critics argue that market influence could be tilted toward decisions that benefit Jump’s equity position rather than overall market fairness. Additionally, its use of advanced artificial intelligence-driven trading models may create an uneven playing field for retail participants.

Furthermore, regulators may scrutinize whether such arrangements compromise market integrity, particularly in politically sensitive contracts. Others believe smaller market makers could also be disadvantaged if equity-linked liquidity deals consolidate influence among a few large firms.

Jump’s entry into prediction markets positions it alongside Susquehanna as one of the few major trading firms with direct stakes in the sector. With valuations rising and event-based contracts gaining traction, these partnerships could accelerate mainstream adoption. However, regulators and market participants are expected to closely monitor the balance between liquidity provision and ownership influence to safeguard transparency and fairness.

FAQ ❓

• What is Jump Trading doing in prediction markets? Jump Trading is acquiring minority stakes in Kalshi and Polymarket in exchange for providing liquidity.
• How big are Kalshi and Polymarket right now? Kalshi is valued at $11 billion, while Polymarket holds a $9 billion valuation.
• Why does Jump’s role raise concerns? As both shareholder and liquidity provider, Jump could face conflict‑of‑interest scrutiny from regulators.
• Who else is active in this sector? Susquehanna International Group and Robinhood have already taken major positions in event‑contract platforms like LedgerX.