Galaxy Digital (Nasdaq: GLXY) has rolled out a new over-the-counter (OTC) trading service for prediction markets, aimed squarely at institutional investors. Through its Global Markets desk, the firm now provides hedge funds, family offices, and other large players with access to substantial liquidity and high levels of privacy that retail platforms typically cannot deliver.
The service focuses on contracts tied to non-sports events listed on platforms such as Kalshi and Polymarket.
These include a wide range of topics spanning economics, politics, geopolitics, and various other event-driven scenarios.
Galaxy intends to broaden the offering by adding more platforms in the coming period.
A key feature is the ability to integrate prediction market positions with offsetting hedges in traditional assets like equities and commodities.
This integrated approach allows clients to construct comprehensive risk management frameworks around specific events, avoiding the fragmentation of handling exposures separately.
Galaxy facilitated a $10 million trade for Arca, a hedge fund rooted in the cryptocurrency sector. The deal centered on potential outcomes related to the CLARITY Act.
The OTC structure enabled Arca to secure an exact position linked to the legislative result while benefiting from institutional-grade liquidity and streamlined bilateral execution.
“Event-driven markets are increasingly central for experienced investors seeking to articulate broad macroeconomic perspectives, and they require matching institutional-grade support,” noted Jason Urban, Global Co-Head of Digital Assets at Galaxy.
“We serve as a principal counterparty capable of holding risk, developing cross-asset hedging approaches, and handling transaction sizes that meaningfully impact client portfolios.”
Jeff Dorman, Chief Investment Officer at Arca, said:
“Our fund is focused on areas connected to ongoing discussions in Washington regarding CLARITY. Prediction markets offer a fitting hedging tool, yet they have lacked the depth and liquidity needed for institutions of our scale.”
By acting as a principal counterparty, Galaxy’s involvement is expected to enhance overall market quality.
Greater institutional participation should lead to pricing that better incorporates insights, making these platforms more reliable indicators for investors, government officials, and businesses monitoring the same developments.
The company stresses that this service is available exclusively to institutional counterparties.
Offerings are assessed individually across different jurisdictions to ensure full compliance with relevant laws and regulations.
Galaxy Digital Inc. stands as a key player in digital assets and data center infrastructure, advancing developments in finance and artificial intelligence.
Its digital assets division delivers institutional services including trading, advisory, asset management, staking, self-custody, and tokenization solutions.
The firm also builds and operates advanced data centers for AI and high-performance computing needs.
Its 1.6 GW Helios facility in Texas ranks among the largest and most rapidly expanding data center projects in North America.
Headquartered in New York City, Galaxy maintains a global presence with offices spanning North America, Europe, the Middle East, and Asia.
This launch underscores the maturing intersection of traditional finance and event-based trading mechanisms. As prediction markets gain traction among professionals, infrastructure like Galaxy’s OTC desk helps bridge the gap between emerging platforms and established institutional requirements.
