{"id":30003,"date":"2026-06-02T14:34:48","date_gmt":"2026-06-02T13:34:48","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/06\/02\/galaxy-digital-otc-prediction-markets-institutions-kalshi\/"},"modified":"2026-06-02T14:34:51","modified_gmt":"2026-06-02T13:34:51","slug":"galaxy-digital-otc-prediction-markets-institutions-kalshi","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/galaxy-digital-otc-prediction-markets-institutions-kalshi\/","title":{"rendered":"Galaxy Digital Launches Institutional OTC Trading for Prediction Markets With a Massive $10 Million Deal"},"content":{"rendered":"\n

Galaxy Digital<\/strong> has just crossed a major milestone in the world of prediction markets<\/strong>. The crypto giant has announced the launch of an OTC trading<\/strong> service exclusively for institutional clients, with a first trade worth $10 million<\/strong> executed on the Kalshi<\/strong> platform.<\/p>\n\n\n\n

This move positions Galaxy<\/strong> as a central player in a segment that large financial institutions have barely begun to explore \u2014 but one where appetite is growing fast.<\/p>\n\n\n\n

Behind this first deal lies a powerful signal: prediction markets<\/strong> are entering a new era of institutional legitimacy<\/strong>.<\/p>\n\n\n\n

Galaxy Digital Establishes Itself as an OTC Broker in Prediction Markets<\/h2>\n\n\n\n

Galaxy Digital<\/strong> has officially launched an over-the-counter (OTC<\/strong>) trading<\/a> service for prediction markets<\/a><\/strong>, targeting institutional investors exclusively. To mark the occasion, the firm executed a first trade worth $10 million<\/strong> in partnership with Arca<\/strong>, a crypto asset manager, on the regulated platform Kalshi<\/a><\/strong>. The contract was tied to the Clarity Act<\/strong>, a piece of US legislation closely watched across the crypto industry.<\/p>\n\n\n\n

This OTC<\/strong> positioning is strategic. Unlike retail-facing prediction markets<\/strong> \u2014 where volumes remain limited and liquidity is fragmented \u2014 the OTC<\/strong> format allows institutions to execute significant size without moving the order book. Galaxy<\/strong> acts here as both counterparty and facilitator, providing the market depth that institutional players demand.<\/p>\n\n\n\n

Kalshi<\/strong>, a US platform regulated by the CFTC<\/strong>, emerges as the natural home for this launch. Its regulatory compliance is a non-negotiable prerequisite for attracting funds, family offices, and institutional trading desks that cannot afford exposure to unregulated platforms.<\/p>\n\n\n\n

Why Institutions Are Finally Paying Attention to Prediction Markets<\/h2>\n\n\n\n

Prediction markets<\/a> have long been seen as a speculative tool reserved for retail participants. The 2024 US presidential election<\/strong> changed that: platforms like Kalshi<\/strong> and Polymarket<\/strong> recorded volumes exceeding one billion dollars<\/strong>, drawing the attention of institutional desks. The pricing accuracy of these markets frequently outperformed traditional polling, reinforcing their analytical credibility.<\/p>\n\n\n\n

For institutions, the appeal is twofold. On one hand, these markets offer a unique hedge against binary events<\/strong> \u2014 legislative outcomes, Fed<\/strong> decisions, election results \u2014 that cannot be effectively hedged through conventional instruments. On the other, they represent a differentiated source of alpha, uncorrelated with the price movements of traditional assets.<\/p>\n\n\n\n

Galaxy Digital<\/strong> clearly understands this. By launching this OTC<\/strong> service, the firm is not simply responding to existing demand: it is actively structuring a still-nascent market<\/strong> and helping define its institutional standards. The choice of the Clarity Act<\/strong> as the first underlying is no coincidence \u2014 it is a piece of legislation directly tied to crypto regulation, a topic on which industry players hold strong conviction and have a genuine need for hedging.<\/p>\n\n\n\n

A Market Taking Shape Between Regulation and Mass Adoption<\/h2>\n\n\n\n

Galaxy’s timing is no accident. Since the CFTC<\/strong> validated Kalshi<\/strong>‘s model for election-linked contracts, the regulatory window has opened for a broader range of prediction markets<\/strong> in the United States. Other players \u2014 including Polymarket<\/a>, which still operates outside the US regulatory framework \u2014 are watching this development closely.<\/p>\n\n\n\n

Galaxy’s entry into this segment sends a clear signal to the market: institutional trading of prediction markets is no longer a hypothesis \u2014 it is an operational reality<\/strong>. Other crypto brokers and prime brokers are expected to follow in the coming months, accelerating liquidity and depth across this segment.<\/p>\n\n\n\n

For European and UK-based institutional players, the question of access remains open \u2014 the MiCA<\/strong> framework does not yet explicitly cover prediction markets<\/strong>. But the momentum building in the US is setting a precedent that European regulators will not be able to ignore for long.<\/p>\n\n\n\n

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