Novogratz’s Galaxy Digital in Prediction Markets Gains Interest

Galaxy Digital in Prediction Talks With Polymarket and Kalshi Rising

Is Galaxy Digital preparing to step into prediction markets? That question is rising across the crypto industry after CEO Mike Novogratz confirmed that the company is talking with Polymarket and Kalshi about becoming a liquidity provider. This Galaxy digital in prediction markets update is reported by the Bloomberg.

While nothing is final yet, the firm has already tested small market-making experiments and is now looking at ways to expand those efforts. This early interest shows how event-driven trading is becoming a serious area for institutional players.

Source: X (formerly Twitter) 

Polymarket and Kalshi: Two Different Models

Polymarket is a crypto-based prediction marketplace where people trade on questions about the future. Users deposit USDC via the Polygon network and purchase and sell shares related to events like elections, inflation, or cultural moments.

"It's a very simple system: If the event occurs, then "yes" shares pay out. If it doesn't, "no" shares win." Polymarket is decentralized, fast, and built on blockchain-but has been closed to U.S. users since 2022 due to a CFTC settlement.

Kalshi, on the other hand, is a fully regulated U.S. exchange. It operates under CFTC approval and offers event contracts tied to politics, economic indicators, weather changes, and other major outcomes. 

Everything is settled in USD, and users get clear tax reporting, which makes it feel more like a traditional financial market than a betting site. Both platforms depend heavily on liquidity providers who keep market stable by offering both buy and sell prices.

Why Galaxy Digital Is Interested

Galaxy Digital wants to play that liquidity-provider role. By offering regular two-way quotes, the firm can help tighten spreads and make these markets easier to trade. 

Mike Novogratz explained that Polymarket and Kalshi run peer-to-peer markets, not casino-style systems, which makes them more aligned with real financial trading structures. Galaxy’s testing phase suggests it sees long-term potential in prediction.

Institutional interest is growing too. Jump Trading has already started making market quietly on Kalshi. The platforms were, until recently, too small for large firms, but now volumes have grown, public awareness has increased, and regulated frameworks have improved. This shift, in turn, makes it easier for institutions like Galaxy to get involved.

What This Means for Crypto

The increasing role of Galaxy Digital in prediction markets can affect the larger crypto world in several ways.

• First, increasing liquidity will make the prediction markets smoother and hence more reliable. Traders may begin treating these as a source of real-time expectations of major events. 

• Secondly, Galaxy's involvement could also bring in other institutions, adding depth and credibility to event-driven trading. 

• Third, the platforms are often fast movers on political or economic news, which in turn impacts crypto sentiment as well.

Final Thoughts

Polymarket and Kalshi represent two different styles of event trading-one decentralized and crypto-native, the other regulated and tied to the US financial system. Galaxy Digital's interest in both shows how these two worlds are starting to come together. Stronger liquidity and institutional support could make prediction markets a powerful tool for understanding how people view the future.