Polymarket is recruiting traders for an internal market-making desk that would take opposing positions to customer wagers, according to people familiar with the matter. The approach mirrors a structure used by competitor Kalshi, where an affiliated trading arm supplies liquidity but has drawn criticism for potential conflicts of interest. Polymarket did not comment on the effort.
The move follows the platform’s renewed entry into the US after receiving regulatory clearance from the Commodity Futures Trading Commission. The company paid a penalty in 2022 for operating an unregistered derivatives exchange and has since acquired entities enabling designated contract market status and regulated clearing. The CFTC recently issued a no-action letter allowing Polymarket to operate under existing derivatives market rules.
Kalshi’s model is already facing legal challenges, including a proposed class action alleging that customers are disadvantaged when trading against its in-house desk. The development underscores a broader debate over whether prediction markets function as neutral trading venues or resemble gambling platforms, particularly as institutional liquidity providers evaluate participation.
