Quick Takeaways
- Crypto.com is building an internal market-making team for prediction markets.
- The exchange says the move boosts liquidity and follows US regulations.
- Crypto.com denies any trading edge or access to customer order flow.
Crypto.com has defended its decision to build an internal market-making team. The exchange says the move supports liquidity in prediction markets. The clarification follows a Bloomberg report on new hiring activity. The report highlighted a role tied to outcome-based trading.
Prediction markets allow users to trade on real-world events. These include sports, economic data, and political outcomes. Market-making in this sector often attracts regulatory scrutiny. Critics warn of conflicts when exchanges trade on their own platforms.
Crypto.com says its approach complies with all federal rules. The company insists that customers receive no disadvantage.
Why Crypto.com Is Hiring an Internal Market Maker
Bloomberg reported that Crypto.com is recruiting a quant trader. The role would support buying and selling prediction contracts. These contracts are tied to sporting event outcomes. They trade on Crypto.com’s prediction markets platform.
The hiring move raised concerns about exchange-run trading desks. Such structures can blur lines between operators and participants. Crypto.com acknowledged the hiring but rejected the criticism. The company said the team operates transparently.
According to the exchange, the desk boosts competition. Greater competition improves pricing and execution quality.
Regulatory Compliance and Market Fairness
Crypto.com said its internal trading team is fully disclosed. The disclosure applies to the US Commodity Futures Trading Commission. The firm noted the team supports its North American derivatives business. Internal and external market makers follow identical rules.
The exchange stressed that no market maker receives priority access. There is no first look at customer orders. Crypto.com said its internal team lacks access to proprietary data. Customer order flow remains protected at all times.
The company emphasised fairness as a core principle. Market integrity, it said, guides platform design.
No Proprietary Trading Revenue, Crypto.com Says
Crypto.com denied relying on proprietary trading for profits. The exchange described its business model as straightforward. It earns revenue through fees on digital asset access. The firm said it remains risk neutral.
According to the spokesperson, trading desks do not drive earnings. Their sole role is to improve liquidity conditions. Liquidity remains critical in prediction markets. Thin order books can distort prices and outcomes.
By supporting active markets, Crypto.com says it benefits users. Better liquidity reduces slippage and volatility.
Market-Making Is Common Across Prediction Platforms
Crypto.com is not alone in using market makers. The practice is widespread in prediction markets. Kalshi relies on designated market makers. It operates a federally regulated event-contract exchange.
Reports suggest Susquehanna International Group provides liquidity. The firm has supported Kalshi since 2024. Polymarket also uses professional liquidity providers. The decentralised platform gained attention during the US election.
Bloomberg reported Polymarket is building its own internal desk. That mirrors Crypto.com’s current strategy. These models reflect growing demand for structured liquidity. Prediction markets continue expanding across finance.
Prediction Markets Face Rising Scrutiny
As prediction markets grow, regulators remain watchful. Outcome-based trading blends finance, data, and speculation. Concerns often focus on conflicts of interest. Transparency becomes essential as volumes increase.
Crypto.com argues disclosure resolves these concerns. Equal rules for all traders support trust. The exchange says internal market making is necessary. It ensures smooth trading during volatile periods.
So far, regulators have not objected publicly. Crypto.com says it continues engaging with oversight bodies. As platforms compete, liquidity may define winners. Crypto.com positions itself as proactive, not evasive.
For now, the debate continues. Prediction markets remain a fast-evolving frontier.