Polymarket adds five-minute crypto contracts to its US application
The new prediction markets cover Bitcoin, Ether, Solana, and XRP using pricing data from CF Benchmarks.
Key takeaways
- 1Polymarket launched 5-minute crypto contracts on its US app on 27 October.
- 2The feature supports Bitcoin, Ether, Solana, and XRP.
- 3Pricing data for settlement is provided by CF Benchmarks.
- 4Tied outcomes at the end of the 5-minute window settle as an Up result.
- 5Taker fees are applied separately from the bid-ask spread.
Polymarket launched five-minute crypto price contracts on its US application on 27 October. The new feature allows users to trade on the price direction of major digital assets over short intervals. The Defiant reported that the markets initially support Bitcoin, Ether, Solana, and XRP. Each contract expires 300 seconds after it is opened.
The platform uses pricing data from CF Benchmarks to settle the contracts. CF Benchmarks is a regulated provider that supplies indices for institutional financial products. This includes several major exchange-traded funds. If the price of an asset remains unchanged at the end of the five-minute period, the contract settles as an "Up" result. This external data source is intended to provide a transparent and manipulation-resistant basis for settlement.
Polymarket charges taker fees separately from the bid-ask spread on these trades. This structure differs from many retail platforms that bundle costs into the price of the asset. By separating the fee, the platform aims to provide more transparency regarding the cost of executing orders. Users can see the specific fee applied to their order before they confirm the transaction. The use of a third-party benchmark ensures that the platform itself does not determine the final price of the contracts.
Prediction markets function by letting users buy shares in the outcome of future events. Prices for these shares typically range between zero and one dollar. This price reflects the market's perceived probability of an event occurring. While Polymarket gained prominence for political forecasting, it has recently expanded into high-frequency financial markets. In these markets, a share that pays out at one dollar represents a successful prediction, while an incorrect one expires worthless.
The introduction of five-minute windows brings Polymarket closer to the functionality of traditional binary options platforms. Traders can enter and exit positions rapidly as the markets refresh every five minutes. The US version of the application operates under specific regulatory conditions. This follows previous settlements between the platform and federal authorities. These short-duration contracts are designed for high-frequency interaction, where the result is known almost immediately after the trade is placed.
The four supported assets represent some of the most active tokens in the digital asset market. Bitcoin and Ether are the two largest by market capitalisation. Solana and XRP also maintain high trading volumes. Polymarket has not yet stated whether it intends to add more assets or different time intervals to this specific product line. The technical integration with CF Benchmarks allows for the rapid settlement required for such short windows.
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