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Galaxy Launches OTC Prediction Market Trading for Institutions with $10M Arca Deal
• Galaxy Digital has launched an over-the-counter trading desk for institutional prediction markets on platforms like Kalshi and Polymarket.
• The firm executed a $10 million inaugural trade with crypto hedge fund Arca on the outcome of the proposed CLARITY Act.
• The service allows clients to hedge prediction market positions across equities and commodities for integrated risk strategies.
• Galaxy acts as a principal counterparty, providing large-scale liquidity and discretion unavailable on retail interfaces.
Galaxy Digital Inc. has formally entered the institutional prediction markets arena, launching a dedicated over-the-counter trading desk to provide hedge funds and family offices with large-scale, discreet access to event-driven contracts. The new offering, announced today, positions the digital asset leader as a principal counterparty capable of executing and warehousing risk for substantial trades on non-sports prediction markets, beginning with contracts on platforms Kalshi and Polymarket.
The initiative moves beyond simple execution. Galaxy’s desk will enable clients to construct sophisticated, multi-asset hedging strategies by pairing positions on political, economic, or geopolitical events with offsets in traditional equities, commodities, or other assets. This integrated approach allows institutions to manage macro exposure holistically, rather than in isolated silos. The firm has already demonstrated the platform’s capability, facilitating a $10 million trade with crypto-native hedge fund Arca on contracts tied to the passage of the CLARITY Act currently under negotiation in Washington.
"Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match," stated Jason Urban, Global Co-Head of Digital Assets at Galaxy. He emphasized the firm's role in providing scale, risk warehousing, and cross-asset strategy support. Jeff Dorman, Chief Investment Officer at Arca, highlighted the liquidity challenge for larger funds, noting that the OTC arrangement with Galaxy allowed Arca to execute a precise, sizeable position that directly aligns with its investment thesis on the regulatory landscape.
Galaxy’s entry as a major liquidity provider is expected to have a profound market impact. The influx of institutional capital and professional analysis through such facilitated channels could lead to more efficient pricing on prediction platforms, enhancing their utility as sentiment indicators for a broader audience of investors and policymakers. The company confirmed it will conduct this activity solely with institutional counterparties, evaluating offerings on a jurisdiction-by-jurisdiction basis in compliance with all applicable regulations.