Galaxy’s Efforts to Boost Liquidity Elevate Prediction Markets as Crucial Financial Indicators

Galaxy Digital, a prominent digital asset investment manager, is

Polymarket and Kalshi to serve as a liquidity provider, Bloomberg has reported. This initiative highlights the increasing institutional engagement in prediction markets, which have since their inception. Founder Mike Novogratz stated in an interview that Galaxy is currently running "limited-scale trials" as a market maker for these platforms, and intends to take on a "wider liquidity" role in the future .

Prediction markets, where users can buy and sell contracts tied to the probability of specific events, have become a unique intersection of finance and information. Leading platforms such as Polymarket and Kalshi dominate the industry, with

overtaking Polymarket in monthly trading volumes since September. Both companies have landed major partnerships, including with Google Finance and the National Hockey League, while like Polymarket's QCEX acquisition and Kalshi's CFTC authorizations have further validated the industry.

Galaxy's possible move into market making fits with its broader mission to deliver crypto infrastructure to institutional clients. Novogratz pointed out that the company seeks to

by providing consistent quotes in prediction markets, a measure that could help stabilize prices and boost trading effectiveness. This step follows similar actions by other industry leaders, such as Gemini and CME Group, who have .

Bernstein analysts observe that prediction markets are

on politics and sports, now branching into economics, business events, and cultural phenomena. The sector's growing popularity among both Wall Street and individual investors has accelerated its expansion, with such as Google Search's use of prediction market data further encouraging adoption.

Galaxy's interest in supplying liquidity reflects the industry's ongoing development and its potential to act as a gauge for real-world outcomes. As major institutions like

and evolving regulations shape the landscape, prediction markets could become an essential tool for measuring public opinion and market forecasts.