#United States #New York #Prediction Markets #Galaxy Digital #Institutional Trading

Galaxy Digital Inc. Launches OTC Prediction Markets

In a significant move, Galaxy Digital Inc. (Nasdaq: GLXY) has introduced a new platform for institutional Over-the-Counter (OTC) prediction markets trading through its Global Markets trading desk. This initiative, announced on June 2, 2026, aims to provide hedge funds, family offices, and other institutional clients with unparalleled access to liquidity and sophisticated multi-asset hedging strategies in event-driven markets.

The Power of Prediction Markets

The newly launched offering encompasses a range of non-sports event contracts, utilizing venues like Kalshi and Polymarket. These contracts cover an expansive array of sectors, including economics, politics, and geopolitical events. Galaxy’s expansion plans suggest future integrations with other trading platforms, signaling a robust commitment to enhancing prediction market access.

Uniquely, Galaxy enables clients to concurrently manage their prediction market positions alongside equities, commodities, and other asset classes. This comprehensive risk strategy empowers institutional investors to address entire event risk profiles holistically rather than in detached segments.

A Major Trade with Arca

Galaxy's initiative has already proven its worth, having successfully executed a $10 million trade with Arca, a crypto-focused hedge fund. This trade was specifically tied to the legislative outcome of the CLARITY ACT, demonstrating the efficacy of Galaxy's platform in facilitating precise, strategically aligned investments. By leveraging the OTC market, Arca could efficiently tap into significant liquidity while aligning their investment approach with their overarching fund strategy.

Institutions Recognizing the Shift

The capability to trade in event-driven markets is becoming increasingly integral for sophisticated investors wishing to express macroeconomic perspectives. As Jason Urban, Galaxy's Global Co-Head of Digital Assets, points out, these investors need infrastructure that is equally sophisticated. The initiative not only provides institutional clients with a principal counterparty to manage risk more effectively but also fosters the opportunity to create hedged strategies across various asset classes—critical for modern investment approaches.

Jeff Dorman, Chief Investment Officer at Arca, emphasized the significance of prediction markets in correlating to legislative negotiations, demonstrating a growing acceptance of such instruments in institutional investment circles. He acknowledged the limitations of existing liquidity in the market and praised Galaxy for enabling their timely and strategic trade execution.

Future Implications for Prediction Markets

Galaxy's involvement as a principal counterparty in prediction markets has broader implications. The firm anticipates that as more institutional capital flows into these markets, the pricing dynamics will become more aligned with thorough analytical perspectives. This progression can benefit a wide array of stakeholders, including investors, policymakers, and corporations, who depend on accurate forecasting in their decision-making processes.

Important to note is that Galaxy's trading activities are confined strictly to institutional partners. The company conducts thorough evaluations of its offerings based on the specific jurisdictional legal and regulatory frameworks, ensuring compliance and best practices.

About Galaxy Digital Inc.

Galaxy Digital is recognized as a global leader in the digital asset space, providing a rich array of services including trading, advisory, asset management, and staking. With its significant data center infrastructure, Galaxy supports growth in artificial intelligence and high-performance computing workloads. Situated in New York City and with additional offices across North America and globally, Galaxy is committed to driving advancements in finance through innovative technology solutions. For more information, visit www.galaxy.com.

Caution on Forward-Looking Statements

It is critical to recognize that the information provided may encompass forward-looking statements under pertinent US and Canadian securities regulations. These statements encompass expectations concerning future events or conditions and are subject to inherent risks and uncertainties. Factors that could impact actual results include market behavior, regulatory changes, and broader economic conditions.

In conclusion, Galaxy Digital Inc. is not just expanding its operational footprint but is fundamentally redefining how institutional investors engage with prediction markets, creating more dynamic and interconnected trading environments for the future.