Key Takeaways
- • Galaxy Digital launches institutional OTC prediction markets trading through its Global Markets desk, enabling hedge funds and family offices to access prediction market liquidity at institutional scale with enhanced discretion unavailable on retail platforms.
- • The offering covers non-sports event contracts on Kalshi and Polymarket spanning economic, political, and geopolitical markets, with plans to expand to additional platforms.
- • Galaxy executed a $10 million inaugural trade with crypto-native hedge fund Arca on outcomes tied to the CLARITY ACT passage, demonstrating the desk's ability to warehouse risk and facilitate bilateral execution.
- • The platform enables multi-asset hedging strategies by pairing prediction market positions with equities, commodities, and other assets, allowing clients to build comprehensive risk strategies around single events rather than managing exposure in isolation.
Summary
Galaxy Digital Inc. has launched institutional over-the-counter (OTC) prediction markets trading through its Global Markets desk, positioning itself as an intermediary connecting sophisticated investors with prediction market liquidity at scales previously unavailable through retail interfaces. The offering addresses a structural gap in the emerging prediction markets ecosystem by providing institutional-grade infrastructure for hedge funds, family offices, and other large asset managers seeking to express macro views through event-driven instruments.
The product covers non-sports event contracts traded on Kalshi and Polymarket, encompassing economic forecasts, political outcomes, geopolitical developments, and other event-driven markets. Galaxy plans to expand coverage to additional prediction market platforms. A distinguishing feature of the offering is its cross-asset integration capability: Galaxy's desk can pair prediction market positions with hedges in equities, commodities, and other asset classes, enabling clients to construct complete risk strategies around discrete events without managing multiple exposures across separate venues.
Galaxy has operationalized the offering immediately, executing a $10 million trade with Arca, a cryptocurrency-native hedge fund, on prediction market contracts tied to the passage of the CLARITY ACT—legislation relevant to the digital assets industry. The transaction demonstrates the desk's ability to act as principal counterparty, warehouse risk, and execute institutional-scale bilateral trades efficiently. According to Jason Urban, Global Co-Head of Digital Assets at Galaxy, the initiative reflects recognition that "event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match." The offering positions Galaxy to capture trading flow and revenue from a growing institutional cohort seeking sophisticated exposure to prediction markets alongside traditional portfolio construction tools.
The product covers non-sports event contracts traded on Kalshi and Polymarket, encompassing economic forecasts, political outcomes, geopolitical developments, and other event-driven markets. Galaxy plans to expand coverage to additional prediction market platforms. A distinguishing feature of the offering is its cross-asset integration capability: Galaxy's desk can pair prediction market positions with hedges in equities, commodities, and other asset classes, enabling clients to construct complete risk strategies around discrete events without managing multiple exposures across separate venues.
Galaxy has operationalized the offering immediately, executing a $10 million trade with Arca, a cryptocurrency-native hedge fund, on prediction market contracts tied to the passage of the CLARITY ACT—legislation relevant to the digital assets industry. The transaction demonstrates the desk's ability to act as principal counterparty, warehouse risk, and execute institutional-scale bilateral trades efficiently. According to Jason Urban, Global Co-Head of Digital Assets at Galaxy, the initiative reflects recognition that "event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match." The offering positions Galaxy to capture trading flow and revenue from a growing institutional cohort seeking sophisticated exposure to prediction markets alongside traditional portfolio construction tools.
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