Citing people familiar with the matter, the report indicates that the firm’s agreement with Kalshi is for a fixed equity position, while its stake in Polymarket can grow depending on the size of its market-making activity.
In contributing to that growth, Jump will provide trading or market-making services for the platforms. In other words, the firm will contribute liquidity or money to market offerings in order to allow for consistent trading of the available markets.
This liquidity is necessary because prediction markets are “peer-to-peer” exchanges, meaning that individuals need to be on each side of a prediction. For example, if a user wishes to predict that the New York Knicks will win an NBA basketball game, another user must maintain a position in their opponent.
Jump, which operates its trading services in traditional equities as well as crypto, has 20 employees trading prediction markets, according to the Bloomberg report.
A representative for Jump Trading did not immediately respond to Decrypt’s request for comment.
