Polymarket is actively looking to establish a market-making team that will facilitate trading against its platform users. The news comes as the company has reached out to various traders, including those engaged in sports betting, inviting them to join this new initiative. According to a report by Bloomberg, this move aims to bolster Polymarket’s expansion in the U.S. following the resolution of prior regulatory concerns, which included a $1.4 million fine imposed by the Commodity Futures Trading Commission in 2022.

Kalshi’s Position

A similar competitor, Kalshi, has a market-making division named Kalshi Trading that assists in enhancing liquidity by placing bids on its own exchange. This practice has sparked criticism and some users have expressed concerns over a recent class-action lawsuit alleging that practices by the market-making desk could potentially disadvantage participants.

Both platforms are pursuing external entities to contribute liquidity, with firms like Susquehanna International Group already involved in market-making on Kalshi.

Cointelegraph is awaiting a response from Polymarket regarding this development.

CEO Perspectives on Prediction Markets

During a recent summit, Coinbase’s CEO Brian Armstrong discussed the potential of prediction markets and suggested that market-making operations could improve their reliability. He highlighted the benefits of insider trading in enhancing market signals, although he acknowledged the ethical dilemmas it may present. Conversely, BlackRock’s CEO, Larry Fink, expressed skepticism about prediction markets, suggesting they distract from long-term objectives and broader outcomes.

The prediction market sector has witnessed remarkable growth, with trading volumes across leading platforms surging significantly over recent quarters.