Nasdaq-listed firm becomes first major digital asset trader to offer large-scale bilateral access to event contracts
Galaxy Digital announced the launch of an over-the-counter prediction markets trading desk on June 2, positioning itself as one of the first major digital asset firms to offer institutional investors large-scale access to event-driven markets through bilateral trading.
The New York-based firm completed a $10 million trade with crypto-focused hedge fund Arca tied to the CLARITY Act outcome, signaling immediate institutional demand. Galaxy’s service initially covers non-sports event contracts on prediction market platforms Kalshi and Polymarket, with plans to expand to additional venues.
“Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match,” said Jason Urban, Galaxy’s global co-head of digital assets.
Galaxy acts as principal counterparty to warehouse risk and facilitate larger transactions on the platforms. Clients can pair prediction market positions with hedges across equities, commodities and other asset classes, allowing investors to express views on political, economic and geopolitical events while managing correlated exposures.
The move addresses a structural bottleneck in prediction market adoption. Jeff Dorman, chief investment officer at Arca, noted that liquidity constraints on existing platforms made it difficult for large investors to participate directly. Prediction markets have experienced rapid growth over the past two years as institutional capital seeks new venues for macro expression.
On the same day Galaxy announced the service, Polymarket completed its first block trade through crypto broker FalconX and trading tech startup Anera Labs, indicating broader industry movement toward institutional infrastructure for event contracts.
Galaxy provides institutional digital asset trading, asset management, staking and tokenization services. The firm’s shares declined 6% on Tuesday, though the fact sheet does not attribute the decline to the prediction markets announcement.
Industry observers expect institutional participation to improve pricing efficiency and make market prices more useful as indicators for broader economic trends. However, regulatory uncertainty remains a key challenge as the sector expands. Galaxy did not specify which regulatory frameworks will govern expansion beyond Kalshi and Polymarket, nor did the firm disclose fee structures for OTC trades.
