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Clear Street, a cloud-native financial infrastructure technology firm, has announced a strategic partnership with Kalshi, which operates the world’s largest prediction market. Clear Street has become the first institutional Futures Commission Merchant (FCM) to join Kalshi’s exchange and clearing house, thereby opening regulated, institutional access to one of the fastest-growing asset classes in modern markets. As part of this collaboration, Clear Street will also launch swap capabilities for ETF issuers structuring listed investment products around prediction markets.
The collaboration begins with institutional trading access to Kalshi's 24/7 regulated event contracts and will expand to include regulated clearing and settlement, large-scale risk transfer through block trading, swap solutions for ETFs, and infrastructure designed to scale the liquidity of Kalshi's markets. By combining Clear Street’s institutional client base with Kalshi’s regulated venue, the two companies aim to establish prediction markets as a serious component of modern institutional portfolios.
Andy Volz, Chief Commercial Officer of Clear Street
Andy Volz, Chief Commercial Officer of Clear Street commented:
“This partnership is a natural extension of our mission to give every sophisticated investor access to every asset, in every market. Prediction markets are emerging as a regulated, fast-growing asset class, and our institutional clients want access to clearing, risk management and swap product capabilities for this growing space. Our cloud-native, end-to-end capital markets platform was purpose-built to deliver this kind of access with speed, transparency and scale.”
For Kalshi, the addition of Clear Street marks the latest step in the platform’s path to widespread institutional adoption. This adoption has increased drastically in recent months as investors show strong demand for trading event-based contracts and hedging event-based risks.
Max Crowley, Vice President of Business Development at Kalshi
Max Crowley, Vice President of Business Development at Kalshi commented:
“Institutional demand for prediction markets is at a tipping point, and our clients have been clear about what they need to scale into the asset class: regulated clearing, deep institutional liquidity and the operational rigor of a modern infrastructure provider. Clear Street delivers all of that, and as the first institutional FCM to join Kalshi, they are setting the standard for how event contracts will be accessed, cleared and risk-managed at institutional scale. This partnership is a major step forward for our market and for the broader category.”
Clear Street’s purpose-built infrastructure powers an end-to-end capital markets platform that enables the rollout of new products and services without duplicating technology stacks or rebuilding systems. This approach aligns with the demand for robust frameworks in areas like prime brokerage comparison, where efficient infrastructure is paramount.
Jon Daplyn, Chief Operating Officer of Clear Street
Jon Daplyn, Chief Operating Officer of Clear Street commented:
“We built a single platform, a single ledger, across every stage of the trade lifecycle. That architecture drives our product velocity and enables the flexibility to move into new markets and bring emerging asset classes like prediction markets onto the same infrastructure as our equities, options, futures, fixed income, derivatives and digital asset businesses without starting from scratch every time.”
The expansion into prediction markets by an institutional FCM like Clear Street highlights a broader trend within the financial industry, where firms are seeking to diversify their offerings and provide access to new forms of risk transfer and investment. This mirrors the ongoing evolution in institutional FX and regulatory leverage comparison across various asset classes, where robust infrastructure and clear regulatory frameworks are crucial for market participants, including sophisticated traders seeking funded trading accounts or advanced AI trading platforms.
As institutional access to emerging asset classes expands, explore LiquidityFinder Insight for the latest market analysis.
