Cantor Fitzgerald announced it will be one of the first investment firms to provide institutional trading access to the prediction market platform Kalshi, marking a significant development in the evolution of prediction markets. The announcement was made on Wednesday morning, with Cantor Fitzgerald set to serve as a broker, organizing block trades on Kalshi's event contracts for its clients. Block trades are large, privately negotiated transactions typically executed outside of public markets to avoid price volatility, a common practice among large Wall Street firms [1].
Susquehanna International Group will act as a market maker, providing pricing and liquidity for these trades with Cantor's clients. Joe Grubb, Susquehanna's head of business development, stated that institutional risk transfer is the next step for the material growth of prediction markets [1]. Kalshi spokesperson Elisabeth Diana noted that Cantor first approached Kalshi a few months prior, and that the investment bank can request the design of new markets for clients, subject to CFTC submission and sufficient liquidity. Areas of client interest include climate, weather, and economic indicator markets [1].
This move is part of Kalshi's broader strategy to attract Wall Street and professional investors, even as retail traders have primarily driven the platform's growth through sports-related event contracts. Kalshi completed its first block trade on an event contract exchange in April and has since announced several partnerships and initiatives aimed at increasing institutional participation in this novel asset class [1].
The announcement underscores the rapid growth of prediction markets and the increasing interest from institutional investors, facilitated by the availability of regulated, scalable trading platforms. CNBC disclosed a commercial relationship with Kalshi, including customer acquisition and a minority investment [1].
CONCLUSION
Cantor Fitzgerald's partnership with Kalshi and Susquehanna International Group signals a major step toward institutional adoption of prediction markets. The introduction of block trades and market-making services is expected to drive further growth and liquidity, positioning prediction markets as a viable asset class for professional investors.