Polymarket Seeks US Futures Broker License to Offer Margin Trading

Polymarket has begun the regulatory approval process to offer margin trading in the US.

Bloomberg reported on July 9 that Polymarket, through its subsidiary Coming Home GBA LLC, filed an application on July 3 with the National Futures Association for a futures commission merchant, or FCM, license. Polymarket confirmed the filing. The company would also need separate approval from the Commodity Futures Trading Commission to amend its rulebook before it can offer margin trading.

Margin trading allows users to open positions without posting the full amount upfront. Institutional investors commonly use it to improve capital efficiency. Polymarket plans to introduce the service to attract more sophisticated investors.

Rival Kalshi obtained an FCM license earlier this year and launched perpetual futures products. Trading volume in those contracts exceeded $5.5 billion within two weeks of their official launch.

Polymarket has also grown rapidly. Its weekly notional trading volume topped $4 billion in June, a record high. Still, regulators and Congress are increasing scrutiny over insider-trading risks, as unusual trading activity is easier to trace on blockchain-based platforms. Users of margin products will also be required to complete additional identity checks, including providing employer information.