Cantor brokers Kalshi prediction markets to 3,000 institutional clients

Cantor Fitzgerald will broker Kalshi's prediction-market contracts to roughly 3,000 institutional clients, giving hedge funds and family offices direct access to event-based trading on weather, commodities and corporate results.

Cantor Fitzgerald will broker Kalshi's prediction markets to roughly 3,000 institutional clients, from hedge funds to family offices, in the latest step toward mainstream acceptance of event-based trading.

"Institutional clients have shown growing demand for regulated prediction and digital-asset markets," said Alun Green, executive vice president and managing director for futures and options at Trading Technologies, which is building connectivity to multiple prediction-market venues.

The investment bank will arrange block trades on Kalshi's yes-or-no contracts covering weather forecasts, commodities, corporate results and other event outcomes, according to the Wall Street Journal. The move follows Trading Technologies' plans to connect its institutional platform to Kalshi in the third quarter and OG.com in the fourth quarter of 2026, adding a second prediction-market venue to its derivatives workflow.

The development could significantly increase institutional participation in prediction markets, which have drawn regulatory scrutiny even as trading volumes surge. Minnesota became the first state to ban prediction markets in May, and a Washington state judge recently blocked Kalshi from offering event contracts to consumers there, citing deceptive marketing of "illegal gambling activities."

Institutional Infrastructure Takes Shape

Trading Technologies' dual-venue strategy reflects a broader buildout of professional-grade infrastructure for event contracts. The company plans to connect its execution and algorithmic trading tools to OG.com, the prediction-market brand operated by North American Derivatives Exchange under Crypto.com's ownership. The CFTC amended the exchange's designation in September 2025 to allow margined futures cleared through registered futures commission merchants, a change that could improve capital efficiency for professional traders.

Crypto.com launched the standalone OG experience in February after reporting a fortyfold increase in weekly prediction-market activity over the preceding six months. The platform now offers contracts covering sports, financial markets, companies, economics, climate and culture. Other infrastructure providers are entering the space as well: TS Imagine has inserted prediction-market probabilities into portfolio risk analysis, and Alpaca has registered its own futures commission merchant ahead of offering event-contract access.

The institutional buildout extends to consumer-facing platforms too. Novig launched its sports-only prediction exchange in California in August 2026, joining Kalshi, Polymarket, DraftKings Predictions and OG Predictive as federally regulated venues available to state residents. California's Digital Financial Assets Law, which took effect July 1, adds a layer of state oversight alongside the federal CFTC framework.

Regulatory Pushback Mounts

The institutional push comes as state regulators challenge the industry's legal footing. Minnesota became the first state to ban prediction markets in May. A Washington state judge last week cited Kalshi for deceptive marketing of "illegal gambling activities," blocking the platform from offering event contracts to consumers in that state. Three California tribes are appealing a denied injunction against Kalshi's sports contracts, arguing they violate the Indian Gaming Regulatory Act, with 27 states and Washington DC filing an amicus brief supporting the tribes.

The regulatory friction coincides with declining public acceptance of gambling. A Gallup poll found 45 percent of U.S. adults reported gambling in the past year, down from 64 percent a decade ago. The share who say gambling is "morally acceptable" fell to 57 percent from 67 percent in 2016.

For Cantor's institutional clients, the brokerage arrangement provides a regulated route into prediction markets without the operational burden of direct exchange membership. Hedge funds could use event contracts to hedge exposure to weather-sensitive commodities or speculate on corporate outcomes that move equity prices. The question is whether state-level legal challenges will constrain the market's growth before institutional volume reaches critical mass.

This article is for informational purposes only and does not constitute investment advice.