Crypto.com Builds Internal Market Maker for Prediction Markets
Crypto.com is establishing an internal market-making team to support its expansion into prediction markets, aiming to boost liquidity while remaining compliant with federal regulations. The company is hiring a quant trader to help facilitate trading of outcome-based contracts, such as those tied to sporting events. This move highlights industry concerns around potential conflicts of interest when exchanges act as counterparties to customer trades. Crypto.com states its market-making activities are fully disclosed to regulators, operate under uniform rules for fairness, and do not involve privileged access to customer data or proprietary order flow. The company emphasizes that market-making is not its primary revenue source, instead focusing on facilitating customer access to digital assets for a fee. Other prediction market platforms, including Kalshi and Polymarket, also use internal or third-party market makers to support trading and liquidity.
