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Galaxy Digital Launches Institutional OTC Prediction Market Trading Desk
• Galaxy Digital has launched an OTC desk for institutional clients to trade prediction market contracts privately and at scale.
• The desk will initially offer contracts from Kalshi and Polymarket on economic, political, and geopolitical events, with a $10 million inaugural trade already executed.
• The service allows clients to pair prediction market positions with hedges in traditional assets like equities and commodities for integrated strategies.
• Galaxy positions the move as building institutional infrastructure for a market sector that has largely grown through retail-focused platforms.
Galaxy Digital, the financial services firm founded by Mike Novogratz, has formally launched an institutional over-the-counter (OTC) trading desk for prediction markets, marking a significant step in the professionalization of this emerging asset class. The new offering, operated through Galaxy’s Global Markets division, provides hedge funds, family offices, and other large-scale investors a private, bilateral venue to execute sizable trades on event-driven contracts, circumventing the public order books of retail-facing platforms.
The desk will initially facilitate trading in non-sports event contracts listed on leading platforms Kalshi and Polymarket, covering a spectrum of outcomes tied to economics, politics, and geopolitics. Galaxy has signaled its intent to expand to additional platforms over time. Crucially, the firm is positioning the service as more than mere access; it offers clients the ability to synthetically pair prediction market positions with offsetting hedges in traditional equities, commodities, or other assets. This integrated approach allows institutions to construct sophisticated macro strategies around specific event outcomes without managing disparate exposures across multiple trading venues.
The initiative has already seen tangible activity, with Galaxy executing an inaugural OTC trade worth $10 million in partnership with crypto-focused hedge fund Arca. The trade was based on outcomes related to the passage of the CLARITY Act, a piece of crypto-focused legislation. Jason Urban, Galaxy’s Global Co-Head of Trading, stated that event-driven markets are becoming “core” to how sophisticated investors express macro views, underscoring the need for institutional-grade infrastructure. Arca’s Chief Investment Officer, Jeff Dorman, noted that while prediction markets are an apt tool for hedging such legislative exposure, deeper liquidity is required for larger funds—a gap Galaxy aims to fill.
Galaxy has confirmed it will conduct this business exclusively with qualified institutional counterparties, evaluating the legality of offerings on a jurisdiction-by-jurisdiction basis. The launch represents a strategic expansion of Galaxy’s institutional trading suite and reflects a broader industry trend where prediction markets are increasingly seen as a nexus between crypto-native activity, traditional macro hedging, and regulated financial infrastructure.