Galaxy Digital Launches Institutional OTC Prediction Markets Desk with $10 Million Kalshi Trade at Launch

Global digital asset firm Galaxy Digital has launched an institutional OTC prediction markets trading service through its Global Markets desk, marking one of the most significant moves yet by a major financial institution to bring professional-grade infrastructure to the fast-growing event contracts space.

The offering allows hedge funds, family offices and other institutional clients to access prediction market liquidity at sizes and with a level of discretion that retail platforms cannot provide. Galaxy acts as principal counterparty, warehousing risk and constructing hedged strategies that can span equities, commodities and other asset classes alongside the event contract itself.

At launch, Galaxy executed a $10 million trade with crypto-native asset manager Arca on Kalshi, tied to the passage of the CLARITY Act, the US crypto market structure legislation currently working its way through Congress.

Jeff Dorman, Chief Investment Officer at Arca, explained the rationale: the firm has active exposure to themes linked to the Washington negotiations around CLARITY, making prediction markets a natural hedging vehicle. The problem was scale. "Prediction markets are currently not a sophisticated institutional market with enough liquidity for a fund of our size," Dorman said. "By utilising the OTC market with Galaxy, we were able to execute a trade that best suits our fund strategy."

Jason Urban, Global Co-Head of Digital Assets at Galaxy, framed the launch as a structural gap being filled. "Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match," he said. "We're giving clients a principal counterparty that can warehouse risk, build hedged strategies across asset classes, and execute at sizes and scale that actually matter to their overall portfolios."

The initial coverage spans non-sports event contracts on both Kalshi and Polymarket, across economic, political and geopolitical categories, with further platforms to be added. Galaxy says it evaluates offerings on a jurisdiction-by-jurisdiction basis and conducts activity solely with institutional counterparties.

Galaxy also argues its participation should improve the quality of pricing on these platforms more broadly. As institutional capital flows in through facilitators of its kind, the firm believes contract prices will increasingly reflect professional analysis rather than retail sentiment — making them more useful as signals for investors, policymakers and corporates tracking the same outcomes.

Prediction markets are attracting serious attention from Wall Street. Single-day volume on Polymarket hit $425 million in February 2026, and the SEC is currently reviewing whether event contract ETFs should be permitted to proceed, having asked for public comment on the question in May.

Galaxy Digital (Nasdaq: GLXY) is headquartered in New York with offices across North America, Europe, the Middle East and Asia.

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