Galaxy Digital has launched an institutional over-the-counter (OTC) trading service for prediction markets, extending its digital assets platform into event-driven derivatives, and enabling hedge funds and other clients to bet on political, economic and geopolitical outcomes.
The new service, which sits within Galaxy’s Global Markets trading division, allows institutional clients to trade prediction market instruments linked to platforms such as Kalshi and Polymarket. The offering is designed to provide liquidity and execution at institutional scale, moving beyond the constraints of retail-facing interfaces.
Galaxy said the initiative enables clients to express macro and thematic views through event-based contracts while also combining those positions with hedges across traditional asset classes including equities and commodities. This structure is intended to allow investors to build integrated portfolios around specific real-world outcomes rather than managing exposures in isolation.
At launch, Galaxy executed a $10m OTC transaction with crypto-focused hedge fund Arca on outcome-based contracts tied to the US CLARITY Act, marking one of the first institutional-scale trades in the new offering. The transaction was executed bilaterally via Galaxy’s desk, providing Arca with direct access to liquidity in a market that remains largely retail-oriented.
The firm said demand for event-driven trading is increasing as institutional investors look for new ways to express macroeconomic and policy views. According to Galaxy, its role as principal counterparty allows it to warehouse risk and facilitate hedged strategies across multiple asset classes, potentially improving pricing efficiency in prediction markets over time.
Executives at Galaxy described prediction markets as an emerging component of institutional portfolio construction, arguing that professional participation could enhance market quality and improve the informational value of pricing signals for investors and policymakers.
The firm also noted that its activities in prediction markets are conducted exclusively with institutional counterparties and are assessed on a jurisdiction-by-jurisdiction basis in line with applicable regulatory requirements.
Galaxy’s move reflects broader growth in interest around event-based derivatives, as digital asset firms increasingly converge with traditional financial market structures and seek to develop infrastructure for new categories of traded instruments.
The company, which also operates across trading, advisory, staking and data centre infrastructure for artificial intelligence and high-performance computing, continues to position itself as a multi-asset financial technology and digital infrastructure provider, with its expansion into prediction markets forming part of a wider strategy to deepen institutional engagement across emerging asset classes.
