Wintermute to bring liquidity to booming prediction markets sector
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- Wintermute announced it will provide liquidity to prediction markets, aiming to reduce spreads, support larger trade sizes, and improve the reliability of market‑implied probabilities.
- Wintermute said prediction markets overlap with its existing crypto infrastructure, which already manages spot, derivatives, DeFi, and OTC crypto markets.
- Kalshi and Polymarket together handle about $5.8 B in notional weekly volume, with roughly 400,000 active markets and 42.7 M weekly transactions, per DeFiRate.
- Kalshi, regulated by the Commodity Futures Trading Commission, holds roughly 70 % of that weekly volume, with politics and sports dominating betting on both platforms.
- Kalshi backs a prediction‑markets lobby group that includes a former Trump official, linking the sector to political influence.
Why it matters: Liquidity providers and traders in prediction markets gain tighter spreads and larger order capacity, while crypto liquidity pools unlock new collateral‑reuse and yield opportunities; the $5.8 B weekly volume sees more efficient pricing and deeper DeFi integration.
