Crypto.com Builds Internal Market Maker for Prediction Markets
Crypto.com is establishing an internal market-making team as it expands into prediction markets, stating the initiative aligns with federal requirements and aims to enhance liquidity amid ongoing scrutiny of outcome-based trading.
Bloomberg reported Tuesday that the exchange is hiring for a “quant trader” on its market-making desk to buy and sell contracts linked to sports outcomes on Crypto.com’s prediction platform, citing a job posting.
The report highlights concerns around exchanges facilitating trades against customer orders, a structure that can raise conflict-of-interest questions as prediction markets gain traction in both crypto and traditional finance.
In a statement, a Crypto.com spokesperson said the company’s internal trading team is fully disclosed to the U.S. Commodity Futures Trading Commission and provides market-making across its North American derivatives business.
The spokesperson said that increased competition and liquidity on the platform are intended to improve the customer experience, and that both internal and external market makers operate under the same rules to maintain market fairness and integrity.
According to the spokesperson, no market maker at Crypto.com receives a “first look,” and the internal market-making desk does not have access to proprietary data or customer order flow ahead of other market makers or market participants.
The spokesperson added that Crypto.com does not rely on proprietary trading for revenue, describing its model as fee-based access to digital assets for retail customers while remaining risk neutral.
Market-making is common among prediction platforms
Other prediction-market operators also utilize market makers to support liquidity. Bloomberg noted that competitors including Kalshi and Polymarket use professional trading firms or dedicated liquidity providers to facilitate trading on their platforms.
Kalshi, a federally regulated event-contract exchange, relies on designated market makers rather than a purely peer-to-peer order book, and these arrangements have largely been public. It has been reported that quantitative trading firm Susquehanna International Group has provided market-making services to Kalshi since 2024, supplying liquidity as trading volumes increased.
Polymarket, a decentralized prediction market that drew broad attention during the U.S. presidential election for accurate forecasting, is also building an internal market-making unit, according to Bloomberg.
Polymarket’s monthly volumes began to surge in the run-up to the 2024 US presidential election. Source: Dune
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