Talos, an institutional crypto trading platform, has integrated Kalshi’s prediction market contracts into its infrastructure, allowing select clients to trade event contracts and crypto perpetuals through unified systems. The integration enables block trades in Kalshi contracts via Talos’ request-for-quote platform using participating over-the-counter liquidity providers.

Talos offers algorithmic order types including Iceberg, TWAP, and POV, plus multi-leg execution for perp-to-perp and perp-to-spot spread trades. The platform plans to extend its dealer software to brokers and trading platforms later this year.

Record Prediction Market Volume in Q2

Prediction markets reached $113.8 billion in notional trading volume during Q2 2026, up 48.7% from the previous quarter. June alone marked a new monthly record with $52.8 billion in notional volume, according to CoinGecko.

Kalshi expanded its market share to 58.9% by June, up from 42.4% in Q1. Polymarket’s share declined to 30.2% from 35.8%. Rothera, which launched in May 2026 and is backed by Robinhood and Susquehanna International Group, reached $2.1 billion in notional trading volume by June.

CoinGecko attributed the surge in prediction market activity to a packed sports calendar in Q2, including the UEFA Champions League final, NBA Finals, Stanley Cup, FIFA World Cup, and Wimbledon. Sports contracts accounted for 81% of Polymarket’s June trading volume, up from 40% in January.

Data Infrastructure and Regulatory Tensions

Talos plans to launch a unified prediction market data feed standardizing events, trades, order books, open interest, and implied probabilities across venues. The move addresses fragmentation across multiple prediction market platforms.

Kalshi faces legal disputes with state regulators over whether its sports event contracts constitute illegal gambling. The company has not disclosed which states are pursuing these disputes or their status.

Recent trading activity has drawn regulatory scrutiny. Six Polymarket traders made $1 million betting on US military strikes against Iran. A White House teleprompter operator allegedly made $100,000 betting on Kalshi markets, though the operator’s identity and any disciplinary outcome have not been confirmed.