Galaxy Digital Executes $10M OTC Swap as Prediction Markets Go Institutional

- $10 million OTC prediction market swap between Galaxy Digital and Arca tied to U.S. regulatory outcome - Highlights rising institutional demand for private, large-scale regulatory hedging in digital assets On June 3, 2026, PRNewswire reported that Galaxy Digital executed a $10 million institutional over-the-counter (OTC) prediction market swap with Arca tied to the outcome of the U.S. Digital Asset Market Clarity Act. On the same day, Bloomberg reported that this event-driven contract allows major crypto funds to hedge legislative risk with customized, private trades, and that it marks a shift toward institutional prediction market activity not accessible through retail-focused platforms. Galaxy Digital’s new OTC trading desk enables institutions to design prediction market trades as ISDA-governed event swaps, and this structure bypasses the public exposure of on-chain venues such as Polymarket. According to PRNewswire on June 3, 2026, the $10 million swap represented nearly five times the total liquidity available for the same event outcome on regulated retail market Kalshi, and this difference underscores the scale and exclusivity Galaxy brings to institutional counterparties seeking regulatory risk management. The transaction demonstrates growing interest among institutional players in flexible, private tools for hedging legislative and market risks in crypto, and Galaxy aims to extend its OTC event trading desk beyond current jurisdictional constraints. As a result, this plan reflects the ongoing institutionalization of prediction markets within digital asset risk management strategies. According to Bloomberg on June 3, 2026, Galaxy Digital tailors its offerings exclusively to institutional clients and adapts structures to fit client needs and legal frameworks. Therefore, this shift toward OTC event swaps signals a notable integration of prediction market instruments into the traditional toolkit used by funds to manage regulatory and market risks.