Polymarket has applied for a US license to offer margin trading. The prediction market is seeking a futures commission merchant license to allow users to open positions by posting only a portion of the required capital.
According to Bloomberg, Polymarket submitted its application through its affiliate, Coming Home GBA LLC, on July 3 to register as a Futures Commission Merchant (FCM) with the National Futures Association.
Margin trading allows traders to borrow funds to increase their position size without paying the full amount upfront. Institutional traders often use margin trading to enhance capital efficiency, but it requires a broker capable of holding funds and managing margin.
An FCM license would enable Polymarket to fulfill that role, handling customer funds and margin similarly to established futures intermediaries. This structure facilitates leveraged trading and provides institutions with the brokerage and custody systems they expect.
However, Polymarket must still obtain approval from the Commodity Futures Trading Commission (CFTC) for rulebook changes before it can list margined contracts. This is a critical step that the company must navigate to move forward.
Rival prediction market Kalshi secured an FCM license earlier this year through its affiliate, Kinetic Markets LLC. The next decision rests with the CFTC, which will determine if Polymarket can catch up to Kalshi’s lead in the coming months.
