# Prediction Markets Attract Institutional Players as Trading Volume Surges
Prediction markets recorded 29.4 billion dollars in trading volume during May, prompting retail brokers and institutional market makers to rapidly expand their involvement in the sector. The surge in activity has exposed infrastructure gaps that firms are now rushing to fill through new partnerships and liquidity arrangements.
Retail broker Moomoo recently partnered with regulated prediction market platform Kalshi to offer event contracts alongside traditional products. This follows similar integrations by Robinhood and Interactive Brokers, which now aggregates contracts from Kalshi, CME Group, and ForecastEx within a single interface. Tradeweb has also invested in Kalshi and formed a strategic partnership targeting institutional distribution channels.
On the institutional side, major market makers are pursuing divergent strategies. Wintermute has begun providing exchange-based liquidity on Kalshi and Polymarket, joining Jump Trading and Susquehanna in supporting public platform trading. The firm handles over 3.5 trillion dollars annually across digital asset markets and aims to address liquidity constraints that have emerged as monthly volumes exceed twenty billion dollars.
Galaxy Digital took a different route by launching an over-the-counter swap business for event-driven contracts. The firm recently executed a ten million dollar trade linked to U.S. crypto legislation, nearly five times larger than comparable exchange-listed contracts. This dual approach reflects growing demand for both transparent exchange liquidity and private execution for larger institutional positions.
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FXnCO Insight
** Brokers offering prediction markets must carefully evaluate whether exchange integrations or OTC arrangements better serve their client base, regulatory framework, and risk management capabilities as this bifurcated market structure takes shape.
Source: Finance Magnates