Galaxy Digital has introduced an over-the-counter (OTC) prediction markets trading service aimed at institutional investors, marking a significant step in the evolution of this sector. The firm completed a notable $10 million trade with hedge fund Arca, linked to the proposed CLARITY Act, which seeks to establish a regulatory framework for digital assets in the United States. This new service will enable hedge funds, family offices, and other institutional investors to trade contracts related to political and economic events, thereby providing access to liquidity and larger trade sizes typically unavailable on retail-focused platforms. By acting as a principal counterparty, Galaxy aims to deepen liquidity and facilitate larger transactions while offering greater discretion than exchange-based trading. This launch reflects a broader trend of institutionalization within prediction markets, traditionally dominated by retail traders. Industry experts believe that the entry of firms like Galaxy could enhance market efficiency and provide better indicators of future outcomes, despite ongoing regulatory uncertainties.