Galaxy Digital has made a $10 million prediction market trade based on the result of the CLARITY Act. This comes as the bill entered the Senate calendar amid Washington’s ongoing debate on digital asset law.
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The deal was done via Galaxy’s recent launch of an institutional over-the-counter (OTC) prediction markets offering. The trade included crypto-focused investment provider Arca. For context Arca availed the service to position themselves to gain exposure to the odds of the CLARITY Act passing in 2026.
This decision comes after Galaxy’s announcement in May that it was exploring other trading venues beyond the traditional digital asset exchanges. The new offering, the firm said, will provide hedge funds, family offices, and other institutional participants. Moreover, it also boasts prediction market liquidity in larger sizes without the constraints of a retail-oriented platform.
Galaxy is already offering contracts for non-sports events on Kalshi and Polymarket. These markets enable traders to bet on political, economic and geopolitical events, along with other outcomes of events.
“Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match,” said Jason Urban, the Global Co-Head of Digital Assets at Galaxy.
He further added, “We’re giving clients a principal counterparty that can warehouse risk, build hedged strategies across asset classes, and execute at sizes and scale that actually matter to their overall portfolios.”
Galaxy also says institutional clients can get equities, commodities and other financial instrument institutional positions alongside prediction market exposure. It would enable them to build more comprehensive risk-management strategies around an event.
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Arca officials said that progress on the CLARITY Act was one of the factors driving the business. “Arca is currently investing in themes closely related to the negotiations in Washington over CLARITY,” said Jeff Dorman, CIO at Arca.
Prediction markets offer a good way to hedge those bets, Dorman added, but those markets don’t have the liquidity needed by bigger funds. “By utilizing the OTC market with Galaxy, we were able to execute a trade that best suits our fund strategy,” he said.
According to the latest update from Congress, the CLARITY Act entered the Legislative Calendar this week. It hints at a potential Senate floor vote soon amid backing from Senate Banking Committee Chair Tim Scott.
In addition, Senator Cynthia Lummis has also ramped up efforts to advance this legislation.
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