PropMarket launches prop trading firm for prediction markets
PropMarket, a New York startup, has launched a proprietary trading firm dedicated to prediction markets. The firm applies the classic prop-trading model — backing traders with firm capital — to the decentralized prediction-market ecosystem, specifically introducing a funding model for traders on Polymarket. Founded in New York, PropMarket emerges as the first dedicated prop firm built for the sector, targeting professionalization of event-contract trading by removing individual capital constraints that have historically limited participation. The launch comes amid a burst of institutional infrastructure development for prediction markets.
PropMarket's capital backing removes the individual wealth barrier that has kept most professional traders out of Polymarket, potentially drawing institutional-caliber participants who previously skipped event contracts for compliance or balance-sheet reasons.
Becomes the third institutional-facing development this week, alongside Galaxy Digital's OTC desk and Wintermute's cross-venue liquidity, as professional trading infrastructure rushes into prediction markets ahead of retail platform saturation.