[Digital Today reporter Chi-gyu Hwang] Galaxy Digital has launched an over-the-counter (OTC) prediction market trading desk for large institutional investors such as hedge funds and family offices.

According to a recent report by The Block, the Galaxy OTC desk handles non-sports event contracts on Kalshi and Polymarket. It includes markets related to economics, politics and geopolitics, and Galaxy Digital plans to expand the platform. It also provides a function that can combine prediction market positions with stock and commodity hedges to build a single event-based integrated risk strategy.

To mark the launch, it signed a $10 million trade with crypto hedge fund Arca. The position bets on whether the Clarity Act will pass on the Kalshi platform.

Arca Chief Investment Officer Jeff Dorman (제프 도먼) said, regarding cooperation with Galaxy Digital, that prediction markets are the most suitable means of hedging positions related to Washington policy, but that existing retail liquidity was not sufficient for a fund of its size.

Earlier, crypto trading firm Wintermute also recently expanded its trading infrastructure with event contracts. Jump Trading signed a market-making agreement in February on the condition that it would receive an equity stake from Polymarket and Kalshi.