Galaxy Digital has launched institutional over-the-counter prediction markets trading through its Global Markets desk. The service gives hedge funds, family offices and other large clients access to prediction market liquidity outside normal retail platforms.
The launch marks another step in prediction markets becoming part of institutional trading. Galaxy will offer access to event contracts linked to non-sports markets on platforms including Kalshi and Polymarket.
OTC desk targets larger trades
Galaxy’s service is built for clients that want larger trades and more discretion than public platforms can usually provide. The desk can help institutions build positions without showing the full order in a retail order book.
The product covers event contracts tied to areas such as economics, politics, policy, commodities and culture. It does not focus on sports contracts, which face stronger legal pressure in the United States.
Galaxy is offering the service through its existing Global Markets infrastructure. That gives institutional clients a familiar route for accessing prediction market exposure alongside other traded products.
First trade linked to CLARITY Act
Galaxy completed its first institutional prediction market trade with crypto hedge fund Arca. The $10 million transaction was linked to the outcome of the CLARITY Act, a U.S. crypto market structure bill.
The trade was executed through Kalshi, with Galaxy acting as market maker. It showed how institutions can use event contracts to trade around policy outcomes that may affect crypto and financial markets.
Policy markets are becoming more relevant for digital asset investors. Legislative decisions can affect token rules, exchange activity, stablecoins and broader institutional adoption.
Prediction markets move beyond retail users
Prediction markets have grown quickly through retail-facing platforms, but larger investors often need different execution tools. Size, privacy, settlement terms and compliance processes become more important when institutions trade.
Galaxy’s OTC model gives those investors another route into event-linked markets. It also shows how prediction markets are moving closer to traditional derivatives and structured trading.
Kalshi and Polymarket remain central
Kalshi and Polymarket remain two of the main prediction market platforms for event contracts. Kalshi operates as a CFTC-regulated exchange in the U.S., while Polymarket has grown as a crypto-linked prediction market platform.
Galaxy’s move gives both platforms another bridge to institutional capital. It also brings more trading activity to a sector already attracting trading firms, hedge funds and market makers.
