Cryptocurrency exchange Crypto.com is taking significant steps to enhance its offerings in the rapidly evolving prediction markets segment. The company is establishing an internal market-making team, a move aimed at improving liquidity on its prediction platform and ensuring compliance with federal regulations. This initiative comes as prediction markets are increasingly gaining popularity, drawing a mix of interest and scrutiny within the financial sector.
Bloomberg’s recent report highlighted that Crypto.com is actively recruiting for a position within its market-making desk, specifically a “quant trader” tasked with managing the buying and selling of contracts linked to the outcomes of various sporting events. This recruitment underscores the exchange’s commitment to facilitating active trading while navigating the complexities surrounding customer orders, a structure that may provoke questions about potential conflicts of interest.
In a statement issued to Cointelegraph, a spokesperson for Crypto.com clarified that the internal trading initiative is transparent and fully disclosed to the US Commodity Futures Trading Commission (CFTC). The spokesperson emphasized that this internal team will operate within the same framework as external market makers, ensuring a fair and integrity-driven trading environment. They stated, “The bottom line for customers is that more competition and liquidity on the platform creates a better overall experience.”
Notably, the spokesperson reassured stakeholders that the internal market maker at Crypto.com does not enjoy any preferential treatment, including “first look” advantages or access to proprietary data before it is made available to other participants. The commitment to maintaining a risk-neutral stance was reiterated, with the company highlighting that its primary business model revolves around providing access to digital assets for a fee without engaging in proprietary trading as a revenue source.
The reliance on market makers for liquidity is not unique to Crypto.com. Other prediction-market operators, such as Kalshi and Polymarket, have also embraced similar practices. The Bloomberg report mentioned that Kalshi, which functions as a federally regulated event-contract exchange, leverages designated market makers rather than adopting a purely peer-to-peer order book model. Notably, Susquehanna International Group has been identified as a key provider of market-making services to Kalshi since 2024, particularly as trading volumes have seen robust growth.
Polymarket, which gained significant attention during the US presidential election for its accurate predictions, is similarly in the process of establishing its internal market-making unit. This trend among prediction markets suggests a broader acceptance of the model, as companies aim to balance liquidity and regulatory compliance in a burgeoning industry. As the sector evolves, market participants are keeping a close watch on how these strategies will shape the future of prediction markets within both cryptocurrency and traditional finance arenas.
