Key Takeaways:
Talos integrated Kalshi's event contracts and crypto perpetuals on July 22, giving institutional clients a single interface for prediction markets and digital assets.
Institutional platform Talos added Kalshi's event contracts and crypto perpetuals on July 22, giving clients access to prediction markets that hit $113.8 billion in Q2 volume.
"Kalshi has established a regulated structure to unlock US institutional participation in perpetuals and prediction markets," Anton Katz, chief executive officer and co-founder of Talos, said.
Talos clients can use algorithmic order types including Iceberg, TWAP and POV, along with multi-leg execution for perp-to-perp and perp-to-spot spreads. The company's request-for-quote platform provides a block trading interface for large off-exchange trades through participating OTC liquidity providers. Prediction market notional volume rose 48.7 percent quarter over quarter to $113.8 billion in Q2, with June's $52.8 billion marking a new monthly record, according to CoinGecko. Kalshi's market share expanded to 58.9 percent from 42.4 percent in the first quarter, while Polymarket's share fell to 30.2 percent from 35.8 percent.
The integration lowers operational barriers for professional firms to add regulated prediction markets alongside crypto trading, as the sector faces mounting legal scrutiny. Kalshi is battling state regulators over whether its sports contracts constitute illegal gambling, a dispute that could reach the US Supreme Court.
Talos plans to extend its dealer software to brokers and trading platforms later this year, allowing them to offer Kalshi event contracts directly to end customers where permitted. The company also intends to launch a unified prediction market data feed that standardizes events, trades, order books, open interest and implied probabilities across venues, with Kalshi among the first supported.
Sports contracts on Polymarket accounted for 81 percent of June trading volume, up from 40 percent in January, CoinGecko data shows. Rothera, the joint venture backed by Robinhood and Susquehanna International Group, launched in May and reached $2.1 billion in notional volume by June, capturing fourth place.
"As institutional interest in prediction markets accelerates, Kalshi's regulatory standing as a CFTC-regulated exchange makes it a natural venue for that demand," Andy Ross, head of institutional at Kalshi, said.
Cantor, the global investment bank within the Cantor Fitzgerald group, advised Talos on aspects of the build-out. "Firms that engage early will help shape the market structure, liquidity and execution standards that underpin its growth," Matt DeCicco, managing director and head of digital assets for global markets at Cantor, said.
This article is for informational purposes only and does not constitute investment advice.
