Polymarket Applies for US Futures Broker License to Offer Margin Trading

Polymarket has started the regulatory approval process to legalize margin trading services 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. A Polymarket representative confirmed the filing. The company would also need separate approval from the Commodity Futures Trading Commission to change its rulebook before it can offer margin trading.

Margin trading allows users to open positions without posting the full amount upfront. Institutional investors typically use it to improve capital efficiency. Polymarket plans to introduce the service to attract a more professional investor base.

Rival Kalshi obtained an FCM license earlier this year and launched perpetual futures products. Trading volume in Kalshi's perpetual futures surpassed $5.5 billion within two weeks of the official launch.

Polymarket is also expanding rapidly. Its weekly notional trading volume topped $4 billion in June, setting a record high. But the blockchain-based platform also makes unusual trades easier to trace, drawing increased scrutiny from regulators and Congress over insider-trading risks. Users of margin products will also be required to complete additional identity checks, including providing employer information.