Galaxy Digital Launches Institutional OTC Derivatives Trading Service

BlockBeats News, June 2nd, digital asset financial services company Galaxy Digital announced that its Global Markets Division has officially launched an over-the-counter trading service for institutional clients in the prediction markets. Through this product, hedge funds, family offices, and other institutional investors can participate in prediction market trading with trading scale and privacy levels that retail platforms cannot provide.

The service currently covers non-sports event contracts traded on Kalshi and Polymarket, including events such as economic, political, and geopolitical developments. Galaxy stated that it plans to expand to more prediction market platforms in the future. Additionally, the company can hedge prediction market positions with stocks, commodities, and other assets to help clients build comprehensive risk management strategies around a single event.

Galaxy revealed that the business has completed its first institutional trade. The company executed a $10 million trade for crypto-native hedge fund Arca related to the outcome of the "CLARITY Act" legislation through a prediction market. Through Galaxy's OTC trading platform, Arca was able to directly speculate on the final outcome of the bill and access institutional-grade liquidity and bespoke trade execution services. This move also highlights the gradual evolution of prediction markets from retail speculative tools to risk management and event trading tools for institutional investors.