FalconX Partners With Kalshi to Supply Institutional Liquidity to Prediction Markets

FalconX, a US crypto prime brokerage, plans to provide liquidity to global prediction-market platform Kalshi.

FalconX announced on its website on May 5 that it had entered into a partnership with Kalshi. The deal centers on expanding institutional access to prediction markets through derivatives and block trades.

FalconX plans to integrate its prime brokerage and derivatives services with Kalshi’s infrastructure. The company said that will help institutional investors increase or hedge exposure to event-driven risks tied to cryptocurrencies, macroeconomic developments and global elections.

“Institutional investors have long needed more ways to hedge risk around specific events,” Max Crowley, Kalshi’s vice president of business development, said. Expanded access through prime brokerage will play a key role in boosting institutional participation, he added.

FalconX said the partnership is part of its strategy to connect traditional finance, or TradFi, with digital-asset markets. “Prediction markets are turning real-world events into investable opportunities and changing how risk is priced and traded,” Joshua Barkhordar, FalconX’s head of sales, said. “This is a natural evolution of financial markets, where institutional capital, derivatives infrastructure and new asset classes are coming together.”