Crypto.com is looking for an inside market maker for its prediction markets. The company says this is legal and will help make the markets more liquid while they are being watched.
As part of its move into prediction markets, cryptocurrency exchange Crypto.com is putting together an internal market-making team. The company says this is fully in line with federal rules and is meant to improve liquidity, even though market-making in outcome-based trading is still under scrutiny.
Bloomberg said Tuesday that the exchange is looking for a new person to work on its market-making desk. They are looking for a “quant trader” who would help buy and sell contracts connected to the outcomes of sporting events on Crypto.com’s prediction platform.
The research has brought attention to the practice of exchanges allowing trading against customer orders. This structure can raise concerns about conflicts of interest as prediction markets become more popular in both crypto and traditional finance.
The bottom line for customers is that more competition and liquidity on the platform makes for a better overall experience, the spokesperson said. They also claimed that internal and external market makers follow the same criteria to make sure the market is fair and honest.
Prediction markets increasingly rely on liquidity providers
The Bloomberg report said that other companies that compete with Kalshi and Polymarket also use professional trading companies or dedicated liquidity providers to make trading easier on their platforms.
Kalshi runs a federally regulated event-contract exchange that relies on approved market makers instead of a totally peer-to-peer order book. Most of the time, these agreements have been public. It has been said that Susquehanna International Group, a quantitative trading company, has been helping Kalshi make markets since 2024, which has helped with liquidity as trade volumes have gone higher.
Bloomberg says that Polymarket, a decentralised prediction market that got a lot of attention during the US presidential election for correctly forecasting the outcome, is also setting up an internal marketmaking unit.