Major Wall Street brokers plan to access prediction markets, with Clear Street and Marex taking the lead

Odaily reported that, according to Bloomberg on Wednesday, major US Prime Brokers are working to provide hedge fund clients with access to the prediction market platform Kalshi. Clear Street, valued at over 12 billions USD, is expected to complete the settlement of its first Kalshi transaction by the end of March; subsequently, Marex Group, valued at around 2.6 billions USD, 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 seeking 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 every week. Although institutional adoption is accelerating, Clear Street CEO Ed Tilly emphasized that, due to ongoing debates among US state regulators regarding the classification of sports markets and insider trading risks, the company will proceed cautiously. (Cointelegraph)