Major Wall Street brokers plan to integrate prediction markets, with Clear Street and Marex leading the way
Svmuu News: 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 complete the settlement of its first Kalshi trade 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 Settlement at Marex, stated that demand for prediction markets among large financial institutions is strong, as they seek not only to generate returns through these markets but also to use them as a tool to hedge their own positions. Kalshi CEO Tarek Mansour noted that prediction markets are becoming a core pillar of the financial ecosystem, with billions of dollars flowing through them each week. Although institutional adoption is accelerating, Ed Tilly, CEO of Clear Street, emphasized that the company will proceed with caution as U.S. state regulators continue to debate the classification of sports markets and the risks of insider trading. (Cointelegraph)
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