Crypto.com Hires Quantitative Trader for Internal Market-Making in Prediction Markets
Crypto.com is expanding its presence in prediction markets by hiring a quantitative trader for an internal market-making desk on its U.S. platform. This role involves trading prediction-market contracts including sports outcomes and other derivatives. Bloomberg reports that this desk will actively trade against customer orders to provide liquidity, a practice that raises potential conflicts of interest.
In response, Crypto.com stated it operates on a fee-based, risk-neutral model and does not rely on proprietary trading for revenue. The internal market maker does not receive preferential access to customer flow or proprietary data, and its operations are disclosed to the Commodity Futures Trading Commission (CFTC). However, the exchange maintains a three-second head start for designated market makers on sports contracts, a policy that has attracted scrutiny for potentially disadvantaging smaller traders.
This move comes amid broader growth in prediction markets across both crypto and traditional finance sectors. Industry peers such as Kalshi and Polymarket also operate internal trading units. Annual trading volumes across Kalshi, Polymarket, and Limitless amount to about $44 billion, with Kalshi reaching peak weekly volumes near $1 billion.
On-chain prediction markets have surged recently, with monthly volumes exceeding $13 billion. Major platforms like Coinbase have introduced prediction-market trading and agreed to acquire The Clearing Company, underscoring increased momentum in the sector.
