Cantor Fitzgerald has launched an initiative to connect about 3,000 institutional investors with trading opportunities on Kalshi’s prediction market platform. Under the arrangement, Cantor will act as an intermediary broker, helping arrange and complete large block transactions in event contracts.

Today, Cantor announced the launch of institutional block trading in event contracts for prediction markets as an introducing broker on @Kalshi , a CFTC-regulated exchange, with Susquehanna providing institutional-scale pricing and liquidity for its prediction markets coverage.… pic.twitter.com/eDRCk8L1T8 — Cantor (@Official_Cantor) August 19, 2026

Today, Cantor announced the launch of institutional block trading in event contracts for prediction markets as an introducing broker on @Kalshi , a CFTC-regulated exchange, with Susquehanna providing institutional-scale pricing and liquidity for its prediction markets coverage.… pic.twitter.com/eDRCk8L1T8

— Cantor (@Official_Cantor) August 19, 2026

Susquehanna International Group, one of the largest options market-making firms in the United States, will handle market-making duties and provide pricing support for the institutional trades. Susquehanna is already Kalshi’s primary liquidity provider. The partnership places Cantor among the early full-service investment banks offering this type of access on an exchange regulated by the Commodity Futures Trading Commission, and it extends Cantor’s recent expansion into newer asset classes, which has included a bitcoin financing venture announced with SoftBank and Tether in 2025.

Prediction markets allow traders to buy and sell binary contracts tied to real-world outcomes. The contracts can cover a wide range of events, including weather forecasts, commodity prices and quarterly corporate results. Kalshi, which launched in 2021, was the first U.S. exchange designated by the CFTC to list event contracts, and its election markets drew heavy trading volume and broad public attention during the 2024 U.S. presidential race.

Pascal Bandelier, Cantor’s co-CEO and global equities chief, said institutional interest has been strong. “The investor base that we’ve met has been really keen on entering and participating in the prediction markets,” Bandelier said.

Institutional demand broadens beyond traditional uses

According to Bandelier, major hedge funds are showing interest in contracts tied to iPhone unit sales rather than direct equity positions in Apple. He added that family offices are exploring event contracts as hedges for weather-related risks and for exposure to agricultural commodities such as crop yields and oil prices.

Joe Grubb, who leads business development at Susquehanna Predictions, said additional use cases include risks tied to AI infrastructure networks and pricing for computing capacity.

The institutional offering also includes customization features, allowing clients to request bespoke markets. Kalshi and its partners have already begun early discussions with investors about the contract specifications they want.

Kalshi builds out institutional infrastructure

Earlier this year, Kalshi completed its first institutional block trade. That transaction involved a custom contract linked to California’s carbon credit allowances and was designed specifically for that deal.

Kalshi has also partnered with Interactive Brokers, a trading platform widely used by professional money managers and hedge funds.

Max Crowley, Kalshi’s vice president of business development, said investor demand is clear. “We get a lot of questions of, I do want to hedge specific event risk, but I don’t know how to do it,” Crowley said.

Historically, prediction markets have been dominated by retail participants, with much of the activity focused on elections and sports. Kalshi has been working to expand beyond those categories. The sector has also drawn a widening field of financial firms: retail brokerages including Robinhood have added event contracts, and Morgan Stanley has begun laying the groundwork to offer prediction-market access to its wealth-management clients. For institutions, CFTC-regulated venues like Kalshi provide a compliant route that offshore, crypto-based platforms generally do not; Polymarket, the largest such platform, has restricted U.S. users since a 2022 settlement with the CFTC.

Bandelier said Cantor sees a structural shift in the market. “Prediction markets are growing rapidly, but institutional participation has not kept pace because investors have lacked the ability to transact at scale on a regulated exchange. The liquidity is here,” he said.

Grubb said he expects institutional risk transfer to become a major growth area. “We believe the next area of material growth for prediction markets will be large institutional risk transfer,” he said.