ChainCatcher report: According to Bloomberg on Wednesday, major U.S. prime brokers are working to provide hedge fund clients with access to the prediction market platform Kalshi. Clear Street, valued at over $12 billion, is expected to settle its first Kalshi transaction by the end of March; followed by Marex Group, valued at approximately $2.6 billion, which plans to follow suit in the coming months. Thomas Texier, Global Head of Clearing at Marex, said there is strong demand from large financial institutions for prediction markets, not only to generate returns but also to use them as a tool for hedging their own positions. Kalshi’s CEO, Tarek Mansour, noted that prediction markets are becoming a core pillar of the financial ecosystem, with billions of dollars flowing weekly. Although institutional adoption is accelerating, Clear Street’s CEO, Ed Tilly, emphasized that the company will proceed cautiously due to ongoing regulatory disputes among U.S. state regulators regarding the classification of sports markets and risks of insider trading.
Major U.S. Prime Brokers to Offer Access to Prediction Market Kalshi
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Summary
Major U.S. prime brokers are expanding access to the prediction market Kalshi, with Clear Street and Marex Group leading the way. Clear Street, valued at $12 billion, aims to settle its first Kalshi trade by March, while Marex, valued at $2.6 billion, will follow in the coming months. Marex’s Thomas Texier highlighted strong demand for prediction markets, citing their appeal for both returns and hedging. Kalshi CEO Tarek Mansour said the platform is shaping market trends with billions in weekly trading volume. Clear Street’s Ed Tilly warned of regulatory risks, particularly in sports markets, and urged traders to carefully assess the risk-to-reward ratio.
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