Cryptocurrency trade Crypto.com is constructing an inner market-making crew as a part of its enlargement into prediction markets, a transfer the corporate says is totally aligned with federal rules and supposed to enhance liquidity, at the same time as market-making in outcome-based buying and selling continues to attract scrutiny.
Bloomberg reported Tuesday that the trade is recruiting for a brand new position on its market-making desk, citing a job posting for a “quant dealer” who would assist purchase and promote contracts tied to the outcomes of sporting occasions on Crypto.com’s prediction platform.
The report has drawn consideration to the follow of exchanges facilitating buying and selling towards buyer orders, a construction that may increase questions on conflicts of curiosity as prediction markets acquire traction throughout each crypto and conventional finance.
In an announcement to Cointelegraph, a Crypto.com spokesperson mentioned the corporate’s inner buying and selling crew is totally disclosed to the US Commodity Futures Buying and selling Fee and makes markets throughout its North American derivatives enterprise.
“The underside line for purchasers is [that] extra competitors and liquidity on the platform creates a greater general expertise,” the spokesperson mentioned, including that inner and exterior market makers function beneath the identical guidelines to make sure market equity and integrity.
“No market maker at Crypto.com will get a ‘first look’, and our inner market maker doesn’t have entry to proprietary information or buyer order movement earlier than different market makers or market individuals,” the spokesperson mentioned.
They added that Crypto.com doesn’t depend on proprietary buying and selling as a income supply. “We’ve got a easy enterprise mannequin offering our retail prospects entry to digital property for a charge, whereas staying danger impartial,” they mentioned.
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Market-making isn’t distinctive to Crypto.com
Crypto.com just isn’t the one prediction-market operator to depend on market makers to assist liquidity.
The Bloomberg report famous that rivals comparable to Kalshi and Polymarket additionally use skilled buying and selling corporations or devoted liquidity suppliers to facilitate buying and selling on their platforms.
Kalshi, which operates a federally regulated event-contract trade, depends on designated market makers fairly than a purely peer-to-peer order e-book, and people preparations have largely been public. It has been reported that quantitative buying and selling firm Susquehanna Worldwide Group has supplied market-making providers to Kalshi since 2024, serving to provide liquidity as buying and selling volumes surged.
Polymarket, a decentralized prediction market that drew widespread consideration through the US presidential election for precisely predicting the result, can be constructing an inner market-making unit, in response to Bloomberg.
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