TL;DR
- Talos integrated Kalshi into its institutional infrastructure, allowing users to trade event contracts and crypto perpetuals without establishing a separate connection.
- The notional volume of prediction markets reached $113.8 billion in the second quarter, 48.7% more than the previous quarter.
- Kalshi strengthened its leadership in the sector and raised its market share to 58.9%, up from 42.4% in the first quarter.
The institutional trading platform Talos completed an integration with Kalshi that allows its clients to trade event contracts and crypto perpetuals from the prediction markets platform through the same infrastructure they already use for digital assets, without needing to establish a separate connection.
The integration incorporates algorithmic order types such as Iceberg, TWAP, and POV, along with multi-leg execution for perp-to-perp and perp-to-spot spreads. Institutional clients will also be able to execute block trades on Kalshi contracts through Talos’s request-for-quote platform, with the participation of over-the-counter liquidity providers.
Talos is bringing prediction markets onto institutional trading infrastructure.
Through an integration with @Kalshi, Talos clients will be able to access to Kalshi's event contracts and crypto perpetuals via the same institutional platform they use to trade digital assets,… pic.twitter.com/9KVgkyVTo8
— Talos (@talostrading) July 22, 2026
Kalshi Is a Catalyst for the Institutional Sector
Talos also announced plans to extend its dealer software to brokers and trading platforms before the end of the year, allowing them to offer event contracts to their clients where regulation permits. In addition, the company is preparing a unified data feed that will standardize events, trades, order books, open interest, and implied probabilities across different platforms.
The integration responds to the strong expansion of the sector. According to a report by CoinGecko, the notional volume of prediction markets reached $113.8 billion in the second quarter of 2026, with June marking a monthly record of $52.8 billion. CoinGecko attributed the surge to a packed sports calendar that included the UEFA Champions League final, the NBA Finals, the Stanley Cup, the FIFA World Cup, and Wimbledon.
Regulatory Friction in Prediction Markets
The sector’s growth brings its own challenges. In the United States, Kalshi is engaged in various disputes with state regulators who question whether its contracts on sporting events constitute illegal gambling, a conflict that several legal analysts believe has a chance of reaching the Supreme Court.
The industry is also being criticized and scrutinized for the possible use of insider information. Earlier this year, six traders from Polymarket reportedly obtained close to $1 million by correctly betting on military strikes by the United States against Iran before they were made public. Last week, a teleprompter operator at the White House was suspended without pay after allegedly earning more than $100,000 on Kalshi markets linked to speeches by President Donald Trump.
