Prospect Markets drops legacy AI deal to ready US prediction markets launch with Crypto.com
Prospect Markets terminated a legacy AI services agreement to free management and capital for its planned US prediction markets entry. The company is positioning itself alongside Crypto.com in regulated event contracts and building out a complementary market-making business. The move signals a strategic pivot toward the US event-contracts space. Published reports confirmed the termination on July 21–22.
The termination frees capital and management bandwidth for a market-making arm that could solve the liquidity problem facing new US entrants. Prospect Markets cannot match Kalshi's $1 billion war chest or DraftKings' 50 million users on brand alone. Tight spreads will decide whether traders stay.
A captive market-maker gives Prospect Markets control of its own liquidity rather than renting it from crypto desks or outsourced providers. That structure matters because Crypto.com's $400 million Citadel-backed raise signals institutional-grade balance-sheet depth is becoming the entry ticket. Competitors still assembling their stacks must now secure similar backing or accept wider spreads that bleed users to established venues.