Jump Trading will provide liquidity in exchange for a small stake in Kalshi and Polymarket

BlockBeats News, February 10th, according to Bloomberg citing sources familiar with the matter, Jump Trading is planning to exchange liquidity by providing it to the prediction market platform for a small stake in Kalshi Inc. and Polymarket.

These anonymous sources said that Jump's agreement with Kalshi involves obtaining a fixed amount of equity in the company. Whereas its stake in Polymarket will increase over time, depending on how much trading capacity Jump provides to the trading platform in the U.S. market.

For Jump, these two transactions represent a victory, as Jump is now taking stakes in both leading prediction market platforms, with Polymarket valued at $9 billion and Kalshi at $11 billion according to the latest round of financing.

Sources said that the terms of these liquidity provision agreements are similar to venture capital deals, with Jump exchanging resources for equity in the form of trades. Platforms like Kalshi and Polymarket rely on market makers (including some internal market-making teams) who are willing to provide liquidity and take the other side of trades.

Sources said that in recent months, Jump has added more staff and financial resources and built technology to support trading in event contracts regulated by the U.S. Commodity Futures Trading Commission. Currently, Jump has over 20 employees engaged in prediction market trading.

Based in Chicago, Jump profits from trading securities and derivatives, with its trades driven by cutting-edge artificial intelligence models. The company is a significant player in asset classes such as U.S. Treasury securities, futures, and cryptocurrencies.