Polymarket applies for margin trading licence in the US

Polymarket, the world’s largest prediction market platform, is seeking permission from US regulators to offer margin trading. This move would allow users to open positions without depositing the full amount upfront, making the platform more attractive to experienced traders.

Application via subsidiary

On 3 July, Polymarket filed an application through its subsidiary Coming Home GBA LLC with the National Futures Association (NFA) to operate as a so-called futures commission merchant. That is reported by Bloomberg. With this licence, the company may officially offer services in which users do not need to put up the full value of a position as collateral.

In addition to the NFA application, Polymarket also requires approval from the Commodity Futures Trading Commission (CFTC). That agency must approve the changes to the platform’s rulebook that would allow so-called non-fully collateralised trading. Other parties in the crypto industry are also currently turning to the CFTC for more clarity on their activities.

Additional identity checks for users

If Polymarket obtains the necessary permits, stricter requirements will apply to users who wish to use margin products. For example, they will have to undergo additional identity verification, including providing employer details. Such checks are common in traditional finance and align with the increasing regulation surrounding prediction markets.

By offering margin trading, Polymarket aims to attract more professional and experienced traders. Margin trading allows users to take larger positions with less of their own capital, which increases both potential gains and risks. It is a logical next step for a platform that is growing and seeking to strengthen its position in mainstream financial markets. Earlier, another development also caused a stir in the sector, when Google banned prediction market extensions from the Chrome Web Store.