Polymarket expands influence in the US market by forming its own market-making team

Source: DigitalToday Original Title: “Polymarket Forms Its Own Market Maker Team” Original Link: https://www.digitaltoday.co.kr/news/articleView.html?idxno=610767 Prediction market platform Polymarket is reportedly forming an internal market-making team to trade directly with users, according to Bloomberg.

Bloomberg reports that Polymarket has recently been seeking to recruit several traders, including sports betting experts. This move is part of a strategy to resolve regulatory issues and expand its influence in the US after being fined $1.4 million by the US Commodity Futures Trading Commission (CFTC) in 2022.

Competitor Kalshi already operates an internal trading team, “Kalshi Trading,” supporting liquidity on its platform. However, this approach has faced criticism for allegedly setting unfavorable betting lines for customers and was the subject of a class-action lawsuit last month. Kalshi also uses external liquidity providers, with firms such as Susquehanna International Group participating as market makers.

A major exchange CEO recently argued at a New York Times event that trading teams within prediction markets can improve market accuracy. He said, “Internal trading can actually benefit people who are trying to predict global events,” adding that, “Accurate information can provide higher quality signals.” Meanwhile, BlackRock CEO Larry Fink expressed skepticism about short-term prediction markets, stating, “We focus on looking ahead 30 years.”