Major cryptocurrency liquidity provider Wintermute announced it is entering the prediction market sector as a liquidity provider. The firm, which handles $3.5 trillion in annual trading volume, stated it will provide continuous two-sided markets for event contracts on leading platforms. Wintermute’s head of OTC trading noted these markets currently have high demand but “early-stage” liquidity, and their involvement aims to tighten spreads and improve market reliability.
Cryptocurrency trading firm Wintermute has extended its institutional services to prediction markets. The firm said it will provide “two-sided markets across event contracts on leading venues” without naming specific platforms.
Wintermute sees prediction markets evolving from a niche tool into a broader venue for trading event risk. The company will post continuous bid and offer prices to improve market depth.
Jake Ostrovskis, head of OTC trading at Wintermute, described the sector’s current state. “For these markets to become a reliable real-time source of probability estimates, they need sustained two-sided liquidity.”
He added that increased liquidity tightens spreads and supports larger trade sizes. This improves the signal embedded in the market prices according to the firm.
The prediction market industry has seen significant growth recently. Data from DeFiRate shows the two leading platforms, Kalshi and Polymarket, have a notional weekly volume around $5.8 billion.
These platforms host almost 400,000 active markets and 42.7 million weekly transactions. CFTC-regulated Kalshi holds a 70% market share of this volume.
Wintermute noted its move could accelerate integration with broader DeFi protocols. This includes potential for collateral reuse or oracle feeds derived from prediction market prices.
The firm already manages spot, derivatives, DeFi and OTC crypto markets. Its existing infrastructure overlaps with the operational needs of prediction markets.
