Source: Wintermute
This helps reduce spreads, support larger trade sizes, and improve the reliability of market-implied probabilities, it said.
Wintermute added that the market also overlaps with its existing crypto infrastructure, as it already manages spot, derivatives, decentralized finance and over-the-counter crypto markets.
The move could accelerate integration between prediction markets and broader DeFi protocols for collateral reuse, yield strategies on locked capital, or oracle feeds derived from prediction market prices.
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The two leading prediction markets, Kalshi and Polymarket, have a notional weekly volume of around $5.8 billion, with almost 400,000 active markets and 42.7 million weekly transactions, according to DeFiRate.
Kalshi, which is regulated by the Commodity Futures Trading Commission, has the largest market share of the volume with 70%. Politics and sports dominate the betting on both platforms.
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