DRW, Wintermute, and IMC build prediction market desks for Kalshi and Polymarket
Quantitative trading firms DRW, Wintermute, and IMC are building dedicated trading desks to trade prediction markets on Polymarket and Kalshi, according to a June 6 post on Binance Square. The move signals growing institutional interest in event contracts from leading market-makers. Polymarket is a crypto-native platform while Kalshi operates as a Futures Trading Commission-regulated exchange. U.S. regulators are reportedly preparing comprehensive rules for the sector, and Bernstein has flagged both platforms as potential acquisition targets amid industry consolidation.
For Kalshi and Polymarket, the arrival of DRW, Wintermute, and IMC changes the liquidity equation from retail-only to institutionally tradable. These firms bring the market-making infrastructure that tightens spreads and absorbs size, which is exactly what the platforms need as they push beyond political events into sports and financial contracts.
The timing is binding: Kalshi's new professional trading interface and AI stress-testing tools are built for this user class, and Polymarket's volume growth depends on proving it can handle block-size flow without slippage. If the desks perform, Bernstein's M&A thesis gains traction and larger financial incumbents have a proven liquidity layer to acquire. If they pull back, both platforms remain niche venues vulnerable to Meta's zero-cost play-money alternative and sportsbook competition.
The desk buildouts arrive as Kalshi and Polymarket face a congressional push to strip sports contracts from the regulated prediction-markets perimeter, threading institutional-market infrastructure through a widening regulatory needle.