Talos, an institutional crypto trading platform, has integrated with Kalshi, enabling select clients to trade the prediction market operator's event contracts and crypto perpetuals through existing digital asset infrastructure. The integration eliminates the need for separate connections and provides algorithmic order types including Iceberg, TWAP and POV, along with multi-leg execution for perp-to-perp and perp-to-spot spread trades. The move comes as prediction markets attract record trading activity, with notional trading volume reaching $113.8 billion in the second quarter, up 48.7% from the previous quarter according to CoinGecko.
Talos Offers Algorithmic Trading Tools for Kalshi Contracts
Talos will provide institutional clients with algorithmic order types including Iceberg, TWAP and POV for trading Kalshi event contracts. The platform enables multi-leg execution for perp-to-perp and perp-to-spot spread trades. Institutional clients will be able to execute block trades in Kalshi contracts through Talos's request-for-quote platform using participating over-the-counter liquidity providers.
Later this year, Talos plans to extend its dealer software to brokers and trading platforms, allowing them to offer Kalshi event contracts directly to customers where permitted. The company also plans to launch a unified prediction market data feed that standardizes events, trades, order books, open interest and implied probabilities across venues.
Prediction Markets Reach $113.8 Billion in Q2 Trading Volume
Notional trading volume in prediction markets reached $113.8 billion in the second quarter, up 48.7% from the previous quarter, according to a CoinGecko report. June's $52.8 billion in notional volume marked a new monthly record.
CoinGecko attributed the surge to a packed sports calendar, including the UEFA Champions League final, NBA Finals, Stanley Cup, FIFA World Cup and Wimbledon. On Polymarket, sports contracts accounted for 81% of June trading volume, up from 40% in January.
Kalshi Expands Market Share to 58.9%
Kalshi expanded its lead among prediction market platforms, increasing its market share to 58.9% from 42.4% in the first quarter. Polymarket's share fell to 30.2% from 35.8%. Rothera, the Robinhood and Susquehanna International Group-backed venture launched in May, climbed to fourth place in June with $2.1 billion in notional trading volume.
Prediction Markets Face Regulatory and Legal Challenges
In the United States, Kalshi is battling several state regulators over whether its sports event contracts constitute illegal gambling. Legal observers believe the dispute could ultimately reach the US Supreme Court.
The industry is facing growing scrutiny over potential insider trading. Earlier this year, six Polymarket traders reportedly made about $1 million by correctly betting on US military strikes against Iran before the attacks became public. Last week, a White House teleprompter operator was placed on unpaid leave after allegedly making more than $100,000 betting on Kalshi markets tied to President Donald Trump's speeches.
FAQ
What did Talos integrate with Kalshi?
Talos integrated its institutional crypto trading platform with Kalshi, allowing select clients to trade the prediction market operator's event contracts and crypto perpetuals through the same infrastructure they use for digital assets. The integration provides algorithmic order types including Iceberg, TWAP and POV, along with multi-leg execution capabilities.
How much did prediction market trading volume reach in the second quarter?
According to CoinGecko, notional trading volume in prediction markets reached $113.8 billion in the second quarter, up 48.7% from the previous quarter. June's $52.8 billion in notional volume marked a new monthly record, driven by a packed sports calendar including major events like the UEFA Champions League final, NBA Finals, and Wimbledon.
What is Kalshi's current market share among prediction platforms?
Kalshi expanded its market share to 58.9% from 42.4% in the first quarter, making it the leading prediction market platform. Polymarket's share fell to 30.2% from 35.8%, while Rothera, launched in May, climbed to fourth place in June with $2.1 billion in notional trading volume.
