- Crypto.com is building an internal market-making team to improve liquidity and provide a better experience for customers.
- The company emphasises that its internal trading team operates under the same rules as external market makers.
- They not alone in this approach, as competitors like Kalshi and Polymarket also utilise market makers to support liquidity in prediction markets.
Cryptocurrency exchange Crypto.com is currently working on building an internal market-making team, aiming to improve liquidity and provide a better experience for customers, as market-making in outcome-based trading continues to draw scrutiny. The move is in line with federal regulations, and the company emphasises it to the internal trading team, which operates under the same rules as the external market makers.
Addressing Conflicts
On Tuesday, Bloomberg reported that the exchange is recruiting for a new role on its market-making desk. They are citing a job posting for a “quantitative trader” who could help them buy and sell contracts tied to the outcomes of sporting events on the prediction platform. Mainly about the potential conflicts of interest, as the exchanges facilitate trading against customer orders.
Also Read: Crypto.com Partners With DBS to Expand Payment Services in Singapore
Industry-Wide Trend
The bottom line for customers is that more competition and liquidity on the platform creates a better overall experience,” the spokesperson said, adding that internal and external market makers operate under the same rules to ensure market fairness and integrity. Also, he said,
“No market maker at Crypto.com gets a ‘first look’, and our internal market maker does not have access to proprietary data or customer order flow before other market makers or market participants.”
Also Read: Sui Foundation Partners with Crypto.com for Secure SUI Token Custody
Regulatory Landscape
They are not only the prediction-market operator to rely on the crypto market makers to support liquidity. The growth of these prediction markets presents both opportunities and risks for investors. On the one hand, these platforms offer a unique way to hedge bets on real-world events or capitalise on market sentiment.
Also Read: DMCC Strikes Strategic Crypto.com Partnership for Tokenised Trade
