- Galaxy Digital launched an OTC prediction market trading desk.
- The first transaction was a $10 million Kalshi trade with Arca.
- The desk targets hedge funds, family offices, and institutional investors.
- Galaxy will support markets across Kalshi and Polymarket.
- Clients can combine event contracts with equity and commodity hedges.
Galaxy Digital has entered the rapidly growing prediction market sector by launching an institutional over-the-counter trading desk dedicated to event-driven contracts.
The platform debuted with a $10 million trade executed alongside crypto hedge fund Arca. The position was tied to the potential passage of the Clarity Act and was executed through Kalshi using Galaxy as the principal counterparty.
The new service is designed for hedge funds, family offices, and other large investors seeking access to prediction markets without relying on retail trading interfaces. By acting as a bilateral counterparty, Galaxy can facilitate larger positions while offering greater privacy and execution flexibility.
According to Galaxy executives, event-based contracts are increasingly becoming a tool for expressing macroeconomic and political views. The firm believes institutional investors require specialized infrastructure capable of handling larger trade sizes and more sophisticated risk management strategies.
The desk initially supports non-sports event contracts on Kalshi and Polymarket, covering political, economic, and geopolitical topics. Galaxy also plans to expand support to additional prediction market platforms in the future.
A key feature is the ability to combine prediction market positions with hedges across traditional financial markets, including equities and commodities. This allows investors to build comprehensive event-driven strategies through a single provider rather than managing separate exposures independently.
The launch reflects growing institutional interest in prediction markets, following similar moves by Wintermute, BitGo, Susquehanna Crypto, and Jump Trading as the sector continues to mature beyond its retail origins.
