Galaxy Digital opens OTC prediction market trading for institutions, kicks off with $10 million Kalshi trade

Galaxy’s new desk gives hedge funds and family offices bilateral access to Kalshi and Polymarket event contracts, starting with an Arca trade tied to the Clarity Act.

By Naga Avan-Nomayo • Edited by Kyle Baird
Business•June 2, 2026, 9:12AM EDT
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Galaxy Digital opens OTC prediction market trading for institutions, kicks off with $10 million Kalshi trade

Quick Take

  • Galaxy Digital executed a $10 million trade with crypto hedge fund Arca on Kalshi at launch, marking the first institutional OTC prediction markets trade through its new desk.
  • The offering lets hedge funds and family offices access prediction market liquidity at institutional scale, with Galaxy able to pair event-driven positions with hedges across equities and commodities.
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Galaxy Digital has launched an institutional over-the-counter prediction-market trading desk, giving hedge funds, family offices, and other large investors access to event-driven contracts in sizes and with a level of discretion unavailable through retail interfaces.

The firm also executed a $10 million trade with crypto-native hedge fund Arca at launch, taking a position tied to the passage of the Clarity Act on Kalshi, according to a Tuesday announcement.

Galaxy's OTC desk acted as principal counterparty, enabling Arca to build the position on a bilateral basis at institutional scale.

"Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match," said Jason Urban, global co-head of digital assets at Galaxy.

Arca chief investment officer Jeff Dorman said prediction markets were the most appropriate hedging vehicle for the firm's Washington-focused positions, but that existing retail liquidity was insufficient for a fund of its size.

The offering covers non-sports event contracts on Kalshi and Polymarket,  spanning economic, political, and geopolitical markets with plans to expand to additional platforms.

Galaxy can also pair prediction market positions with hedges in equities and commodities, allowing clients to build unified risk strategies around a single event rather than managing exposure separately across asset classes.

Prediction market expansion

The launch follows a steady institutional march into prediction markets.

Wintermute extended its trading infrastructure into event contracts last week, The Block reported.

BitGo moved earlier in March, partnering with Susquehanna Crypto to offer institutional OTC access with crypto and stablecoin collateral. Jump Trading also struck market-making deals with both Polymarket and Kalshi in exchange for equity stakes in February.

Galaxy had been exploring the space since at least November and was reportedly in talks to serve as a liquidity provider for both Polymarket and Kalshi.