Galaxy opens OTC desk for institutional prediction markets

Galaxy Digital has launched an institutional over-the-counter trading desk for prediction-market contracts tied to platforms including Kalshi and Polymarket. The desk sits within Galaxy’s Global Markets trading division. At launch the firm executed a $10 million bilateral OTC trade with crypto-focused hedge fund Arca on contracts linked to the US CLARITY Act.

The desk offers institutional-scale liquidity and execution for outcome-based contracts that have been primarily used by retail participants. Acting as a principal counterparty, Galaxy can warehouse positions and provide hedged strategies that combine prediction-market exposure with traditional assets such as equities and commodities.

Galaxy said the offering enables clients to express macro and thematic views through event-based contracts and to integrate those positions into broader portfolios rather than managing them separately.

The firm will trade prediction-market contracts exclusively with institutional counterparties and will assess activity on a jurisdiction-by-jurisdiction basis to meet applicable regulatory requirements. Galaxy intends to absorb and manage risk across counterparties and to provide the type of execution institutional clients expect.

Executives described prediction markets as a developing component of institutional portfolio construction and said professional participation could improve pricing efficiency and the informational content of contract prices for investors and policymakers. The firm noted the desk complements its trading, advisory, staking and data-center businesses and forms part of a wider effort to expand services for institutional clients in emerging asset classes.