Crypto.com Hires Internal Market Maker for Prediction Markets

Crypto.com is expanding into prediction markets and is hiring a trader for a market-making desk that will buy and sell contracts tied to sports outcomes on its U.S. platform, Bloomberg reported. Market makers add liquidity by quoting prices on both sides, helping markets stay tradable during events.

Critics say the arrangement gets murky when the market maker is owned by the exchange. If an in-house desk takes the opposite side of customer orders, the venue can resemble a sportsbook-style model where the “house” benefits from user losses. Similar concerns have surrounded other operators. Kalshi, a regulated rival, runs an internal unit called Kalshi Trading, and reports have said Polymarket is building its own market-making team.

Crypto.com’s job post says the hire would work to maximize profits while managing risk, wording that has fueled debate. A Crypto.com spokesperson responded that the company does not rely on proprietary trading as a revenue source and instead earns fees for providing access to digital assets and event contracts while remaining risk neutral. The spokesperson added that the market maker does not receive preferential access to customer order flow or proprietary data, and follows rules filed with the Commodity Futures Trading Commission.

The exchange is also courting outside liquidity providers, but its rulebook gives designated market makers on sports contracts a three-second head start over smaller traders. Critics argue that advantage could let larger firms adjust prices ahead of retail users.

The push comes as prediction markets surge across crypto and traditional finance. Coinbase has also entered the race, launching event-based trading and agreeing to acquire prediction infrastructure startup The Clearing Company as competition heats up.