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Bonus TL;DR
- FalconX, Cantor Fitzgerald, and Phillip Capital are expanding institutional access to Kalshi prediction markets by integrating event contracts into established brokerage, clearing, and technology workflows.
- Major traditional finance firms are building out the infrastructure—such as Cantor Fitzgerald offering block trading and ION supporting clearing via XTP—signaling that professional investors increasingly view CFTC-regulated event contracts as a viable tool for risk management.
FalconX, Cantor Fitzgerald and Phillip Capital are among the firms expanding institutional access to Kalshi prediction markets, with new brokerage, clearing and technology links pointing to broader adoption of U.S. event contracts.
The shift matters because it shows prediction markets moving beyond retail participation and into established institutional trading workflows. The Markets Media report said firms are using existing brokerage, clearing and technology infrastructure to give professional investors more ways to trade or hedge through CFTC-regulated event contracts.
FalconX and Cantor add new institutional routes into Kalshi
In August, FalconX and Kemet announced a collaboration aimed at increasing institutional exposure to Kalshi contracts. According to the report, Kemet is providing FalconX with infrastructure to access Kalshi, and FalconX is also a minority investor in Kemet.
Joshua Lim, FalconX head of markets, said institutions are showing interest in prediction contracts tied to economic data, political markets, crypto thesis hedges and other financialized binary markets. He also said FalconX does not cover sports prediction markets.
The article said most institutional liquidity is still happening in bilateral event-contract trading, with typical trade sizes of $1 million to $10 million. Lim said the market remains early, comparing prediction markets today to crypto options in 2019-2020.
Also in August, Cantor Fitzgerald announced institutional trading for prediction markets on Kalshi. Cantor said it is one of the first full-service investment banks offering institutional clients access to block trading in event contracts on a CFTC-regulated exchange, and that it is working with Susquehanna Predictions as a liquidity provider.
Clearing and trading tech firms build the rest of the stack
Phillip Capital also announced a partnership with Kalshi, saying clients can execute trades through their preferred trading platform while Phillip clears the Kalshi activity. The firm said it expects to clear the full range of eligible contracts rather than limit access to selected categories.
The technology side is expanding too. ION said in September that Coinbase selected its XTP platform to support event contract clearing for Kalshi. TS Imagine integrated prediction markets data into its platform in August, allowing clients to incorporate that data into portfolio and risk analysis.
Trading Technologies has also been building toward broader connectivity in the sector. The company said in June it would support client trading on a range of U.S.-regulated prediction markets, beginning with connectivity to Kalshi. TT also said connectivity to OG.com, Crypto.com’s CFTC-regulated exchange and clearinghouse, is scheduled to go live in Q4 2026.
The report suggests institutional participation in prediction markets is still at an early stage, but the number of firms adding brokerage, clearing and trading support indicates growing confidence that event contracts will become a more established tool for expressing views and managing risk.
Source: As reported by Shanny Basar.
