Galaxy Digital is exploring partnerships with Polymarket and Kalshi to become a liquidity provider.

According to Odaily, Galaxy Digital, led by Mike Novogratz, is in talks to provide liquidity to prediction market platforms Polymarket and Kalshi.

In an interview with Bloomberg, Novogratz stated that Galaxy Digital is currently conducting "small-scale market-making experiments" in prediction markets, adding that the company plans to offer "broader liquidity" on these platforms in the future.

This move marks Galaxy Digital's expansion into the emerging prediction market space, which is increasingly seen as a new frontier combining information and finance. Prediction markets allow users to trade simple "yes" or "no" contracts, with the contract price reflecting the market's implied probability of a given outcome.

Polymarket and Kalshi are the two major platforms in the space, with a combined trading volume of approximately $42.4 billion. While Polymarket, which focuses on decentralization, initially gained market dominance around the US election results, Kalshi, regulated by the CFTC, has surpassed it in monthly trading volume since September.

Bernstein analysts wrote in a client report earlier this month that the prediction market is "evolving into a broader information market," with demand expanding from politics and sports to areas such as economics, culture, business activity, and financial indicators. Meanwhile, other major players in the crypto and finance sectors are also seeking to enter the space through their own platforms; for example, Gemini and CME Group recently announced their respective plans.