Jump Trading to Take Stakes in Kalshi and Polymarket

Jump Trading, the high-frequency trading powerhouse, is moving to cement its position in the rapidly growing world of prediction markets. 

According to Bloomberg, the Chicago-based firm is poised to acquire equity stakes in both Kalshi and Polymarket, the two biggest players in the event-contract industry.

Both of these deals are structured as liquidity-forequity, with Jump providing deep market-making services that ensure stable trading environments in exchange for ownership. 

With Kalshi, the company will receive a fixed equity share, while Jump’s stake in Polymarket is expected to scale over time, contingent on the volume of liquidity it will contribute to the platform’s U.S. operations.

This move marks a significant milestone for the prediction market sector, which has recently graduated from a niche corner of the internet to a multi-billion-dollar asset class.

The entry signals that Wall Street now views event-based contracts as a permanent fixture of the financial landscape, especially since the U.S. Commodity Futures Trading Commission (CFTC) eased restrictions on event-based contracts in late 2024.

However, the sector still faces a number of regulatory hurdles. While Kalshi operates as a federally regulated exchange, it continues to battle state-level pushback in jurisdictions like Nevada and Maryland. 

For Jump Trading, which has navigated the volatile waters of crypto and high-frequency equities for decades, these stakes represent a calculated bet that the future of finance lies in the ability to trade on any real-world outcome.