Polymarket is seeking regulatory approval to offer margin trading in the US, a move that would let users bet on events with less capital upfront and help the prediction market platform attract more sophisticated traders.

The company filed an application to operate as a futures commission merchant through its affiliate, Coming Home GBA LLC, according to a July 3 filing with the National Futures Association.

Polymarket must also obtain approval from the Commodity Futures Trading Commission for changes to its rulebook that would allow non-fully collateralized trading.

A representative for Polymarket confirmed that the company has applied for an FCM license. Representatives from CFTC and the National Futures Association didn’t immediately respond to requests for comment.

Prediction market platforms such as Polymarket and Kalshi Inc. offer yes-or-no wagers on the outcomes of events ranging from weather and sports to elections. The contracts appeal to novice users because they are simpler than traditional financial derivatives such as futures traded on exchanges including CME Group Inc.

Companies such as Polymarket are looking to add margin trading to attract a broader, more sophisticated class of trader. Margin trading allows users to open positions without putting up the full amount of capital, a tactic frequently used by institutional investors.

Institutional investors see margin trading as a more capital-efficient way to place bets across markets. Kalshi got its own FCM license earlier this year in a bid to expand client access to event bets on its platform at a larger scale, and it is part of the infrastructure needed to support perpetual futures.

Perpetual futures are a type of derivative popular in crypto markets that, unlike traditional futures contracts, do not expire. Instead, the value of the contract remains tied to the underlying asset, creating a tradable instrument that tracks the current price of a commodity. Kalshi racked up more than $5.5 billion of perpetuals trading volume within two weeks of the product’s official launch. The company offers contracts primarily tied to crypto tokens.

Retail traders have turned prediction markets into one of the fastest-growing parts of finance, with weekly notional volume on Polymarket hitting a record of more than $4 billion in June. The platforms are also attracting investment from traditional exchange operators, and getting institutional investors on board is seen as a crucial next step in their development.

Polymarket uses a public blockchain ledger that makes it possible for anyone to see individual bets, though the associated accounts are generally pseudonymous. While suspicious trades have long surfaced across financial markets, the traceability of unusually well-timed trades on Polymarket has drawn scrutiny from lawmakers and regulators over insider-trading risks in the prediction-market industry.

US regulations would require users accessing margin products on any prediction market platform to undergo additional identity checks, including providing employer information. Those requirements have become a hot-button issue as the platforms grapple with high-profile instances of insider trading.

(With assistance from Lydia Beyoud.)

©2026 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.