Wall Street Prime Brokers Plan to Access Prediction Markets, Clear Street and Marex Take the Lead

According to a Bloomberg report on Wednesday, major U.S. prime brokers are working to provide their 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; subsequently, Marex Group, valued at approximately $2.6 billion, also plans to follow suit in the coming months.

Thomas Texier, Global Head of Clearing at Marex, stated that large financial institutions have strong demand for prediction markets, not only hoping to gain returns through such markets but also aiming to use them as tools to hedge their own positions. Kalshi CEO Tarek Mansour pointed out 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 CEO Ed Tilly emphasized that due to ongoing disputes among U.S. state regulators over the classification of sports markets and the risks of insider trading, the company will proceed with caution. (Cointelegraph)