TL;DR:
- Galaxy Digital launched an institutional OTC prediction markets trading desk and executed its first $10 million trade with fund Arca on Kalshi.
- The platform allows hedge funds and family offices to access event contracts at institutional scale, covering economic, political and geopolitical markets.
- A growing trend: Wintermute, BitGo and Jump Trading also expanded their infrastructure into prediction markets over the past few months.
Galaxy Digital launched an institutional OTC trading desk dedicated to prediction markets, offering hedge funds, family offices and other large investors access to event contracts at sizes and discretion levels that retail interfaces cannot provide. The announcement also included the immediate execution of a first $10 million trade with Arca, a crypto-native hedge fund, on the probability of the Clarity Act being approved on the Kalshi platform.
In that transaction, Galaxy’s OTC desk acted as the principal counterparty, allowing Arca to build the position bilaterally at institutional scale. Jeff Dorman, Chief Investment Officer at Arca, noted that prediction markets were the most suitable hedging vehicle for the fund’s Washington-oriented positions, though the available retail liquidity proved insufficient for a fund of its size.
Today, we're launching institutional OTC prediction markets trading through our Global Markets desk.
Hedge funds, family offices, and other institutional clients can now access prediction market liquidity at sizes and with a level of discretion suited to institutional scale. pic.twitter.com/aP5xpYY8Nf
— Galaxy (@galaxyhq) June 2, 2026
Galaxy Digital Builds the Missing Infrastructure for Market Events
Jason Urban, co-head of global digital assets at Galaxy, explained that “event-driven markets are becoming a central tool for sophisticated investors to express macro views, and they deserve the right institutional infrastructure.” The offering covers non-sports event contracts on Kalshi and Polymarket, spanning economic, political and geopolitical markets, with plans to expand to additional platforms.
A distinctive feature of the service is the ability to combine positions in prediction markets with hedges in equities and commodities. This allows clients to build unified risk strategies around a single event, without needing to manage the position separately across each asset class.
The Institutional Prediction Market Takes Shape
Galaxy’s launch is part of a wave of institutional expansion into the segment. Last week, Wintermute extended its trading infrastructure and launched event contracts. In March, BitGo partnered with Susquehanna Crypto to offer institutional OTC access with crypto and stablecoin collateral. In February, Jump Trading closed market-making agreements with Polymarket and Kalshi in exchange for equity stakes in both platforms.
Galaxy, for its part, had been exploring the market since at least November 2025 and was reportedly in talks to act as a liquidity provider on both platforms.
