Jump Trading to Take Minority Stakes in Kalshi and Polymarket Through Liquidity Deals

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Jump Trading is set to acquire small ownership stakes in prediction-market platforms Kalshi Inc. and Polymarket in exchange for providing liquidity, according to a Bloomberg report citing people familiar with the matter.

The Chicago-based proprietary trading firm's agreement with Kalshi includes a fixed equity stake, while its potential ownership in Polymarket will depend on the level of trading capacity Jump supplies to the platform's U.S. operations. The discussions are private, and the people involved declined to be identified.

Rather than making traditional cash investments, the arrangements are structured around liquidity provision, with Jump contributing capital and trading infrastructure in return for equity. Such deals resemble venture-style partnerships, where market-making capabilities play a central role.

Prediction-market platforms like Kalshi and Polymarket rely heavily on market makers—both internal systems and external firms—to commit capital and take the opposite side of customer trades. These participants are seen as critical to maintaining orderly markets and stable pricing, particularly during periods of heightened uncertainty.

Kalshi's most recent funding round valued the company at approximately $11 billion, while Polymarket's latest fundraising placed its valuation near $9 billion, according to the report.

The potential investments align with Jump Trading's broader expansion into event-based derivatives. Founded in 1999 by former Chicago Mercantile Exchange pit traders, Jump trades across asset classes including U.S. Treasuries, futures, and cryptocurrencies, using quantitative strategies supported by artificial intelligence models.

Other trading firms have made similar moves into the sector. Susquehanna International Group disclosed in 2024 that it would act as a market maker on Kalshi. In addition, Susquehanna and Robinhood Markets Inc. acquired a majority stake last year in LedgerX, a U.S.-based derivatives exchange, gaining control over infrastructure used to list and clear event contracts. Susquehanna served as a "day-one liquidity provider" for that platform.

Jump Trading began making markets on Kalshi late last year, becoming one of the first major proprietary trading firms to enter the emerging event-contract market, which has drawn increasing attention from both Wall Street and Silicon Valley.