Polymarket has applied for a US license to offer margin trading. The prediction market is seeking a futures commission merchant license.

If approved, the license would enable users to open positions by posting only a portion of the required capital.

What Polymarket Filed and Why It Matters

According to Bloomberg, Polymarket filed through its affiliate, Coming Home GBA LLC, to register as a Futures Commission Merchant (FCM). The application was submitted on July 3, as per the National Futures Association.

Margin trading lets traders borrow to increase their position size without paying the full amount upfront. Institutional traders use it to improve capital efficiency, but it requires a broker that can hold funds and manage margin. 

An FCM license would give Polymarket that role. As a Futures Commission Merchant, it would handle customer funds and margin in the same way as established futures intermediaries do.

That structure enables leveraged trading and provides institutions with the familiar brokerage and custody rails they expect. Even so, Polymarket still needs the Commodity Futures Trading Commission (CFTC) to approve rulebook changes before it can list margined contracts.

Notably, rival Kalshi secured an FCM license earlier this year through its affiliate, Kinetic Markets LLC. The next move sits with the CFTC. Its decision will determine whether Polymarket can catch up to Kalshi’s lead in the coming months.

Source: BeInCrypto