Galaxy Digital opens institutional OTC prediction markets desk with $10M Arca CLARITY Act trade
Galaxy Digital launched an institutional over-the-counter prediction markets trading desk on June 2, 2026, executing a $10 million inaugural trade with crypto investment firm Arca on Kalshi tied to the CLARITY Act, a proposed U.S. crypto regulation bill. The offering targets institutional clients seeking structured exposure to event-contract outcomes alongside traditional holdings, pairing prediction market positions with hedges in equities, commodities, and other assets. The desk will trade non-sports event contracts on Kalshi and Polymarket, spanning economic, political, and geopolitical outcomes, with plans to expand to additional venues, according to Galaxy Digital Assets Global Co-Head Jason Urban. Arca operates a regulated venue with larger position limits than retail-facing platforms, while Galaxy's swap dealer structure allows bilateral access that bypasses traditional exchange venues.
Galaxy's $10 million CLARITY Act swap with Arca immediately validates institutional-sized liquidity on Kalshi beyond retail caps, pressuring competitor broker-dealers to build similar OTC prediction market infrastructure or lose hedge fund and family office flow.
Joins Wintermute and FalconX as the third crypto-native prime broker to build prediction-market infrastructure this quarter, confirming that institutional liquidity is migrating from retail order books toward bilateral OTC execution.