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- Cryptocurrency market maker Wintermute has confirmed that it provides two-sided liquidity to major forecasting platforms.
- A person familiar with the matter told Decrypt that the companies include Polymarket and Kalashi, creating a mechanical link between the two companies.
- By acting as a liquidity provider rather than a bookmaker, Wintermute says it aims to tighten spreads and accommodate large trades.
Wintermute, one of the largest and most prominent market makers in the cryptocurrency industry, confirmed on Friday that it provides liquidity in prediction markets.
The London-based company, which says it processes more than $3.5 trillion in annual trading volume, revealed in Blog post It has been actively working to “transfer two-sided market prices via event contracts in leading venues.”
A person familiar with the matter said Decryption That the venues include Polymarket and Kalshi, suggests that capital flows dynamically between both platforms in a way designed to make it easier for traders to buy and sell positions without causing significant price fluctuations.
In a statement, Wintermute’s head of OTC trading, Jake Ostrovskis, described the liquidity profile of prediction markets as “early stage,” a quality that belies growing demand.
“For these markets to become a reliable, real-time source of probability estimates, they need sustained liquidity on both sides,” he said. “This depth narrows spreads, supports larger trading volumes, and thus improves the signal embedded in market prices.”
This ad highlights the fundamental mechanical connection between two companies pitted against each other in an emerging market. Everything has happened over and over again male Its business is based solely in the United States, while Polymarket’s main place of operation is overseas.
Rather than betting on a specific outcome of an event, liquidity providers aim to facilitate trades, specifically taking advantage of “spreads,” or the difference in costs associated with buy and sell orders. In the context of a casino, they can be viewed as card dealers rather than gamblers.
Its involvement in the market forecasting space moves platforms from “a nice forecasting tool to a broader venue for trading event risk,” Wintermute said, adding that providing liquidity helps improve the reliability of the odds offered on Polymarket and Kalshi.
Separately, the Commodity Futures Trading Commission Issued Friday’s order allows Calcci to offer perpetual futures contracts in the United States linked to the price of bitcoin. Last year, Wintermute CEO, Evgeny Zhivoy He said Bloomberg The company has plans for a “new additional focus on the US”
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